Romania’s GDP To Grow By 3.2% In ’09 - World Bank

Romania’s economic growth will slow down to 3.2% in 2009, from 8.6% in 2008, according to the World Bank’s Global Economic Prospects 2009 report, released on Tuesday.

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The World Bank analysts forecast a further acceleration in 2010 economic growth, to 5.8%.

The institution estimates a deepening of the current account deficit from 14.1% of the GDP in 2007, to 15.5% of the GDP in 2009, but sees a reduction of the gap to 8.6% of the GDP in 2009 and further to 7.4% of the GDP in 2010.

World Bank’s predictions are more pessimistic than Romanian Prognosis Commission’s forecast, which sees a GDP growth of 6% in 2009, and a 6.3% economic growth in 2010. Also, the Prognosis Commission estimates the current account gap to be at 13.2% of the GDP this year, and will fall to 12.2% of the GDP in 2009 and 11.2% of the GDP in 2010.

As regard the Europe and Central Asia region, the World Bank sees a slowdown in this year’s economic growth, from 7.1% in 2007, to 5.3% in 2008.

“GDP growth slowed across the region during 2008. The group of Central and Eastern
European countries (CEE), (including Bulgaria, Poland, Romania, and the middle-income Baltic states but excluding Turkey), saw growth ease from 6.6% to 5.5% in the year,” the report stated.

Slowing demand in the euro area, dampened export performance, while overheating in several countries required a mix of fiscal and monetary tightening to stem inflationary pressures, the World Bank said.

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