Romania will emerge out of recession, with 1.6 growth in 2011, PwC study shows

Romania will emerge out of recession in 2011, with a 1.6 percent economic growth, according to PricewaterhouseCoopers. Also, the latest PwC prognosis estimates an inflation rate of 5.4 percent in 2011 in Romania.

The report shows that the developing economies are continuing to power the growth of the global economy, while most developed economies are struggling in the face of high unemployment and waning consumer demand.

Global GDP growth will be 3.5 percent this year and 3.1 percent in 2011, according to the forecast.

In developed economies, the climb out of recession in the Euroland is slow and painful for many countries, with high unemployment and upcoming austerity measures likely to dampen growth prospects. Germany, however, bucks the trend, with its forecast GDP growth at 3.3 percent this year – more than double the forecast growth figure for Euroland as a whole. “So far this year, business confidence has been stagnant in the US, while confidence levels in Japan and the Euroland appear to be continuing a slow recovery towards pre-crisis levels,” says Yael Selfin, Head of PwC’s Macro Consulting team. The US economy is also slowly returning to growth, despite persistently high unemployment and continuing fears over deflation.

The report highlights the gap in performance and prospects between the developing and the developed world. Thus, China and India will continue their impressive growth in 2010 and 2011. China is expected to post 9.6 percent this year and 9.3 percent the next. The Indian economy set to grow by 8.6 percent this year and 8.5 percent the next.

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Otilia Haraga