EBRD Cuts Romania’s Growth Forecast From 3% To 1%

For 2008, EBRD estimates an economic growth of 8%, compared with 6% in the previous year, a 0.5% increase from the previous forecast.

In November, the EBRD cut Romania’s 2009 growth forecast by 2 percentage points as well, from 5% to 3%, while its forecasts on the 2008 economic growth rose from 5% to 7.5%.

Earlier this month, the European Commission cut sharply its forecast regarding Romania’s economic growth in 2009 from 4.75% prior estimated, to 1.75%, due to a sharp reduction of credit growth, weakening confidence indicators and worsening labor market conditions.

Romania’s Finance Minister Gheorghe Pogea has previously stated the economy would land from an economic growth of 7.9%, estimated for 2008, "to below 3%, perhaps 2.5% in 2009.