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Raiffeisen Bank Sees Romania ’10 GDP -3% On Low Consumption

Raiffeisen Bank revised downward its forecast on Romania’s economic growth in 2010, from minus 2% to minus 3%, on lower household consumption following the increase in the value added tax level.
Raiffeisen Bank Sees Romania '10 GDP -3% On Low Consumption
09 iul. 2010, 12:59, English

„It is obvious the consumption will sharply contract this year, as a result of the revenue adjustment, the unemployment increase and the VAT,” Raiffeisen Bank Romania chief economist Ionut Dumitru told MEDIAFAX.

The Romanian Government decided to increase the value added tax to 24% from 19% starting with July 1. Other austerity measures were implemented as well, under the loan agreement inked with the IMF, so that the budget deficit remain below 6.8% of the gross domestic product.