BUSINESS

EC: Economic growth of 0.8 pc in 2012

According to the European Commission’s new estimates, Romania will register an economic growth of 0.8 per cent this year, the main risks consisting of political uncertainty and the drought’s stronger than expected impact. The GDP’s growth will accelerate to 2.2 per cent next year. For 2014 the EC estimates a GDP growth of 2.7 per cent. In the economic outlook report published in the spring of this year the EC was forecasting an economic growth of 1.4 per cent this year and 2.9 per cent in 2013. The joint statement that the EC, IMF and WB representatives made following their mission to Bucharest during the summer, a mission that evaluated Romania’s loan agreement, took into account an economic growth of 1 per cent this year, followed by one of 2.5 per cent next year. “The main risks for 2012 consist of continuing internal political uncertainties that could hike financing costs and limit investments, and of the drought’s stronger than expected impact,” the report reads. In other developments, an over-regulated environment, the lack of institutional capacity within the public administration system and a very poor rate of absorbing European funds (below 10 per cent) are just some of the conclusions on Romania’s economic context that Normunds Popens, Deputy Director-General of the EC’s Directorate General for Regional Development, presented during a conference on the preparations made for the future European funds in the 2014-2020 period.

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