23:08
„Romania faces tough austerity measures, and the economy will contract by 1.2% this year, before returning to growth in 2011,” EIU said in its latest global economic outlook report.
The think-tank also warned that resistance to wage and pension cuts could lead to political instability.
The EIU also cut its forecast for the Balkan states to minus 02% in 2010 from a growth of 0.4% previously. For 2011, it estimates an economic growth of 3.1%, slightly lower compared with 3.3% initially predicted.
Worldwide, the EIU expects an economic growth of 4.4% this year and of 3.6% in 2011.