EBRD improves projections for Romanias 2011 GDP growth to 1.9%.

By bne IntelliNews July 25, 2011
The EBRD improved marginally its projection for Romanias GDP growth to 1.9% in 2011 in the July edition of its Regional Economic Prospects, compared to 1.8% in the May forecast. An economic growth of 3.8% in expected in 2012 with the forecast remaining unchanged from the previous report. The inflation rate is expected to surge to 6.7% in 2011 from 6.1% in 2010. The fiscal balance is seen at a deficit of 4.4% of GDP in 2011 after 6.5% in 2010. The current account surplus is expected to expand to 5% of GDP in 2011 from 4.2% in 2010. A positive trend is seen in net FDI, which are to climb to 2.9 % of GDP in 2011 from 2% in 2010. The austere fiscal policies conducted by the government help reduce the risks on the fiscal side, but delay the recovery of domestic demand, the report said. As a result, Romanias GDP growth would be this year the weakest in the region covered by EBRD, except for Croatia. The governments forecast, drafted under the stand-by agreement in cooperation with the IMF, includes an even more moderate projection of an 1.5% growth this year.

Related Articles

Romania to spend EUR 37mn in 2013 to close down loss-making coal mines.

Romania's government has earmarked RON 163mn (EUR 37mn) worth of subsidies for 2013 under a programme aimed at closing down the loss-making mines of local company CNH located in the southwestern ... more

Romanias Hidroelectrica sells nearly 0.3TWh of electricity on free market.

Romanian state-controlled hydropower company Hidroelectrica sold on Thursday, March 21, in several separate contracts a total of 0.3TWh of baseload electricity deliverable between April 1 and the ... more

Romania to start privatisation of cargo railway company on April 6-8.

The Romanian government will publish the privatisation call for freight railway company CFR Marfa immediately after the consultants complete their work, probably on April 6-8, Romanian transport ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335