convergence program

Romanian private consumption is set to pick up in the coming period, following sharp reductions in the previous years, but recovery could lag behind due to possible tax increases and higher global prices for oil and food items, according to the draft convergence program for 2011-2014.

Romania’s economic growth may be impaired on medium-term by falling investment, constraints in credit availability and rising unemployment, the European Commission said Wednesday in its assessment of the country’s updated convergence program.

Romania could miss its budget deficit target in 2010, because some of the measures aimed to slash public spending are socially and politically difficult to carry out, the European Commission said in its opinion on the country’s updated convergence program.

A very sluggish global recovery could put pressure on Romania’s economic growth in 2010, slowing it down to 0.2% from 1.3% envisaged in the basic scenario, according to the government’s draft convergence program for 2009-2012.