The EBRD slashed this year’s economic growth estimate of Romania to 0.5 percent in the bank’s latest Regional Economic Prospects report, warning there is no real recovery yet in Emerging Europe.
The forecast was revised down from an initial 0.8 percent due to the slowdown in the euro zone, the drought-stricken agricultural output, and the political uncertainties that engulfed Romania in the past months. The EBRD estimates the domestic economy will expand by 1.9 percent next year.
Romania recorded the fourth largest economic growth in the EU, gaining 0.5 percent in the second quarter. However, the EBRD economists warn this is not enough so the yearly growth will be of 0.5 percent.
The EBRD stated the financial agreements with international lenders acted as important buffer, especially due to Romania’s economic ties with the Euro zone.
The forecasts for Slovenia, Hungary, Croatia and Serbia, all of which are still in recession, have also been slashed.
Ovidiu Posirca