The European Bank for Reconstruction and Development (EBRD) has slightly hiked its economic forecast for Romania from 1.8 per in May to 1.9 per cent, however it warned that the new austerity measures adopted by the government as part of its precautionary agreement with the IMF will affect the recovery of internal demand. “Exports are growing strongly, industrial production had an annual growth of more than 7 per cent in May and even the constructions sector is starting to recover,” the EBRD analysts claim, being quoted by Mediafax. Despite the upward revision, Romania’s economic growth remains last but one among the 29 states in which EBRD is operating. The outlook is poorer only in Croatia, the latter having an estimated growth of 1.1 per cent this year. In EU member states Romania and Bulgaria the economic outlook is improving but at a modest rhythm, EBRD underlines. The IMF and the EC estimate an economic growth of 1.5 per cent in Romania this year. EBRD maintains its forecast for Romania’s economic growth at 3.8 per cent in 2012.