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April 23, 2021
BUSINESS

Oxford Economics anticipates 0.1 pc GDP growth in 2011, 4.8 pc in 2012

Oxford Economics anticipates a “marginal” growth of Romania’s GDP this year, by 0.1 pc, reassessing a previous forecast that referred to a 1 pc contraction this year, mainly due to exports (+7 pc) and industrial output (+5.2 pc), Mediafax reports. Meanwhile, IMF and the Government forecast a real GDP increase of 1.5 pc. “Exports remain the main driver of growth (…) but Romania is still vulnerable to a decline of demand across the EU,” the British analysts explain. According to Oxford Economics, although the economic growth will be weak this year in Romania, fiscal consolidation is crucial in securing a sustainable economic recovery. Next year looks much better for Romania, in the vision of Oxford Economics, with a 4.8 pc growth of the GDP, fueled by private consumption, investment and public consumption, as well as by positive results in the economy. According to the same source, the economy of the Euro zone has a two-step dynamics, with sound results in the states that fare better, while the countries located on the outer edge of the zone, with high debts and budget deficits, will further be confronted by weak economic activity and high unemployment.

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