Thursday, August 18, 2016

Romania economy growing 6%

Business Review:

Analysts at Nomura investment bank have upgraded the economic growth outlook for Romania, after the National Statistics Institute (INS) said the country has registered a 6 percent hike in output in the second quarter against the same period of last year.

The bank now forecasts that the Romanian economy will expand by 5 percent of GDP. In its previous estimate, the financial institution had put Romania’s growth outlook at 4.5 percent of GDP.

The Romania economy is the fastest growing economy in Europe. However the growth in the economy has not translated into higher stock prices yet. Nevertheless, this is good news for my holdings in closed end fund Fondul Proprietatea. The fund is still selling at an almost 30% discount to net asset value. plus you get around a 6% dividend while you wait for the gap in value to close.

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