Romania Will Miss Budget Gap Target, Because Of Upcoming Elections - Piraeus

Romania's Government will miss this year's budget deficit target of 4.4%, agreed upon with the International Monetary Fund, as there is a high likelihood of "fiscal slippages" before next year's parliamentary elections, say analysts from Piraeus Bank.

25 views

They expect the government to run a deficit of 5.5% this year.

Romania's general consolidated budget registered a deficit of 7.42 billion lei (EUR1.76 billion) at the end of May, 1.36% of the gross domestic product.

Piraeus estimates Romania's economy will grow by 1.4% in 2011, supported by higher investments and exports, while consumption will have a modest contribution.

The current account deficit will increase to 7.6% by the end of the year, from 4.3% in 2010, because economic recovery will encourage demand for imported goods, says the analysts' report.

Piraeus Bank's operations in Romania are Piraeus Bank Romania, Piraeus Leasing and Piraeus Insurance Reinsurance Broker.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.