Romania To Set 2012 GDP Growth Target In October, In Talks With IMF – PM

Boc said the Government keeps 1.5% as the target GDP growth for 2011. The official growth forecast for 2012 is 3.5-4%.

Recently, however, Boc has said that expectations on the economic performance of many European Union member states are quite bleak, indicating that the economic crisis is not over, which may indirectly affect Romania's growth. He also explained that any salary raise in the public sector next year depends on budget resources, so no promises can be made unless growth of 3.5% is achievable.

On Monday, President Traian Basescu asked the Government to prepare a budget for next year "unrelated to the elections," that will take into account a growth of 2-2.5%, "but founded on investments."

Romania's prognosis commission (CNP) on Tuesday revised upward its economic growth forecast to 1.7% in 2011, from 1.5% previously, saying it expects a positive contribution from farming output.

Nevertheless, the same farming output is very likely to limit the next year's growth, because of the base effect, CNP head Ion Ghizdeanu said.

He said financial woes in international markets are also bound to have a negative effect on the 2012 economic growth, slowing it down to around 3% from 4% previously estimated. However, an official forecast on the 2012 growth will be announced at the end of October.

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