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December 6, 2022
BUSINESS

EBRD cuts Romania’s 2012 GDP growth prediction to 0.5 pc

The European Bank for Reconstruction and Development (EBRD) has cut Romania’s GDP growth prediction for this year to 0.5 per cent, down from 0.8 per cent in July, the reasons consisting of the Euro crisis, the developments in the agriculture sector and the political uncertainty, a press communiqué informs. The bank slightly hiked its prediction for 2013 and is now expecting a 1.9 per cent GDP growth, up from 1.8 per cent in its previous report. “The slowdown in the Euro Area, the significant decline in agricultural production and the higher political uncertainty has had a strong impact on Romania’s growth this year. The GDP is currently expected to grow by just 0.5 per cent despite a solid third quarter. The financial support from the IMF and from other international financial institutions has ensured an important protection, especially in light of the country’s close financial ties with the Euro Area,” the EBRD report reads. The IMF has more optimistic estimates for Romania, both for this year (0.9 per cent) and for next year (2.5 per cent).  The growth in the region will slow down from 4.6 per cent last year to 2.7 per cent this year, and will be followed by a slight growth to 3.2 per cent next year, as a consequence of the Euro Area crisis that will continue to affect the economies of countries in Central, South-Eastern and Eastern Europe, the Caucasus and Central Asia, the economies of the Baltic Countries, Turkey, Russia, as well as Morocco, Tunisia, Egypt and Jordan, countries that recently became part of the bank’s mandate.

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