BERD improves estimates regarding Romania’s economy

BERD is slightly more optimistic about Romania’s economic performance in 2014, upping its estimate from 2.4 percent (issued in January) to 2.6 prcent. The financial institution warns against the negative effects of a high rate of bad loans and fallout from the Ukrainian crisis.

Next year, the projection indicates a GDP advance of 2.8 percent, according to a BERD report

“Economic activity has improved beyond expectations last year. The GDP increase 3.5 percent based on a good year for agriculture and exports. Inflation falls under the level set by the Central Bank of 2-4 percent and Romania exited the “excessive deficit” procedures in 2013. The estimated growth of 2.6 percent will accelerate slightly the following year at 2.8 percent, maintained through exports and a recovery of internal demand”, according to BERD.

The International Monetary Fund and the Government are counting on an economic growth of 2.2 – 2.5 percent in 2014, according to the last letter of intent sent to Washington. IMF estimates, in the latest issue of World Economic Prognosis published din April, that Romania’s economy will grow by 2.2 percent this year and 2.5 percent in 2015.

The European Commission anticipates a GDP growth of 2.5 percent this year and 2.6 percent in 2015.

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