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EC Revises Up Romania 2010 Inflation Forecast To 4.3%

The European Commission revised its inflation forecast on Romania to 4.3% this year from 3.5% previously, as it expects higher excise duties on tobacco and oil to increase inflationary pressures, according to its spring forecast report released Wednesday.
EC Revises Up Romania 2010 Inflation Forecast To 4.3%
05 mai 2010, 12:54, English

The Commission said the sluggish domestic demand could help ease inflation in 2010. On the other hand, the same anemic consumption is one of the main factors that hinder economic revival.

Real GDP growth is expected to recover moderately to 0.8% for 2010 as a whole, gradually accelerating to 3.5% in 2011, the Commission said. The growth in 2010 is predicted to rely on exports and foreign direct investment.

„Private consumption growth is not expected to recover firmly until later in the year, because of slower wage increases, the continued high rate of unemployment and difficult access to credit,” the Commission noted.

It said investment should remain weak throughout the entire year, weighed down by low capital utilization rates, credit constraints and market uncertainty.