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WB Revises Dn Romania’s 09 GDP Growth Forecast, To 2% At Most

The World Bank revised downwards its estimation on Romania’s economic growth in 2009, from 3.2% to 0%-2%, as prospects for growth in the region continue to deteriorate, according to World Bank economist Erika Jorgensen.
WB Revises Dn Romania’s 09 GDP Growth Forecast, To 2% At Most
20 feb. 2009, 15:00, English

But she said the forecasts on the region are very uncertain, as new predictions are more and more pessimistic, and they could be even worse in several months.

The World Bank noted the economic sentiment is deteriorating rapidly in the EU10 region, which includes 10 states that became part of the EU in 2004 and 2007.

The international financial institution said Latvia might see a 5%-7% contraction in 2009, while Hungary’s economy might shrink by 3% this year.

The rest of the economies in the EU10 might grow by up to 2% in 2009, Jorgensen said.

In December 2008, WB said in its Global Economic Prospects 2009 report that Romania’s economic growth would slow down to 3.2% in 2009, from 8.6% in 2008.

Romanian authorities are targeting a 2.5% economic growth in 2009.

The World Bank said EU member states in the region were affected by the global financial crisis, as the external demand collapsed, following the recession in their main export markets, the foreign capital inflows were drying up, and due to the lack of confidence in the banking sector.

Also, the gas crisis in January had a significant impact on several countries in the region, the World Bank economist said.

The EU10 refers to Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic and Slovenia.