EBRD: Romanian economy to grow by 1.4 pct in 2013, 2.2 pct in 2014

Newsroom 10/05/2013 | 13:12

Romania should report a 1.4 percent economic growth this year and a 2.2 percent growth rate in 2014 given the negative effects of the euro zone crisis on the South-Eastern Europe region and especially on exports, estimates the European Bank for Reconstruction and Development (EBRD).

Romania is expected to consolidate its economic growth this year on a “modest recovery” of demand and confidence, said EBRD representatives. They forecast small GDP increases throughout the entire region for 2013 which should pick up to an average of 2.2 percent in 2014.

The EBRD estimation is in line with the forecasts made by the European Commission and International Monetary Fund which estimate Romania will post a GDP growth of 2.2 percent and 2 percent, respectively.

The Romanian government, on the other hand, has announced a 1.6 percent economic growth forecast for 2013. The central bank governor Mugur Isarescu has recently commented that this could go beyond 1.6 percent should Romania report a good agricultural year.

South-Eastern Europe economies continue to be affected by the euro zone crisis especially when it comes to exports. Economic slowdown in Poland and Turkey has also taken its toll on the region. The Polish economy is expected to grow by only 1.2 percent this year and 2 percent in 2014. The forecast for neighboring Hungary is that its economy will drop by 0.8 percent this year and grow by 0.9 percent the next year. Bulgaria should see its GDP grow by 1 percent this year and 2.4 percent in 2014.