Romania, "modest economic recovery in the coming years"
For Romania, the European Commission estimates a modest economic growth next year, up to 2.2 percent, while in 2014 the growth is anticipated at 2.7 percent of GDP.
08 Noiembrie 2012, 11:00
Romania faces a period of modest economic recovery over the next two years.
Our economy begins to recover next year and the growth will accelerate in 2014 - shows the autumn economic forecasts of the European Commission released on Wednesday in Brussels.
The difficult situation is extended to the European economy.
GDP is expected to fall by 0.3 percent this year and by 0.4 percent across the euro area.
Anticipating economic growth figures are revised downward compared to spring, and the economic affairs commissioner, Olli Rehn, acknowledged that a recovery may only be provided next year.
"The forecasts that we publish today show a greater reduction in economic growth this year across the European Union. Before a return to moderate growth next year, we expect a strengthening of economic growth in 2014 in the European economy", said Commissioner Olli Rehn.
Thus, the short-term outlook of the economic recovery remains fragile, but the recovery hopes link to 2014, when including Greece will record growth for the first time after many years.
Domestic political uncertainties, risks of economic downturns
The only country that will still be in recession in 2014 is expected to be Cyprus.
For Romania, the European Commission estimates a modest economic growth next year up to 2.2 percent, while in 2014 growth is expected at 2.7 percent.
The inflation will rise next year but will decrease in 2014, while the unemployment rate will remain constant over the next two years in Romania: 7.3 percent.
The economic growth this year is estimated at 0.8 percent with domestic demand as the main factor.
The European Commission also mentions that the main risks of economic decline this year in Romania are related to domestic political uncertainties which could increase funding costs and could reduce investment but also the impact of drought on the agricultural sector, a greater impact than expected, after how estimates the European Commission.
Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University
