Romania’s Gross Domestic Product (GDP) will advance more than 7 percent this year as a better-than-expected farming year is forecasted, Prime Minister Calin Popescu Tariceanu said.
- Publicitate -
The official noted a 7.5 percent economic increase was reported for the first quarter, this being the equivalent of Romania’s GDP in 2000.
The 5.5-6 percent economic growth estimates made by the Central Bank of Romania (BNR) could prove conservative after the gross domestic product recorded in the first quarter advanced 7.5 percent, BNR vice governor Cristian Popa previously said.
The statement came within a seminar held by the European Bank for Reconstruction and Development (EBRD) in Kiev. EBRD previously said Romania’s economic growth would brake to 5.1 percent this year from 6 percent in 2007.
Popa explained if the EBRD estimates confirm that would lead to the tempering of the economic growth and not a hard landing of the Romanian economy.
The official noted a 5 to 6 percent annual growth would be closer to the increase potential the Romanian economy has. Economy and Finance Minister Varujan Vosganian previously said the economy grew 7.5 percent in real terms, in the first quarter.
The EBRD prognosis for 2008 is gloomy and a hard landing scenario is out of the question, the chief economist of Banca Comerciala Romana (BCR), Lucian Anghel told NewsIn.
"We say we had an exceptional first quarter and if there are no weather problems we will have an exceptional third quarter," said Anghel, referring to last year’s crops which were affected by the severe drought in the summer.
Popa noted BNR will keep on focusing on a lower inflation target as a monetary policy strategy and despite the high price volatility, as it lacks a better alternative. The official noted such a move is still relevant although the hike of oil prices affects the strategy.
NewsIn
