Romania's central bank maintains prognoses for inflation and economic growth in 2008

Romania's central bank (BNR) has no reason to modify inflation and economic growth prognoses for 2008 however a revise is not out of the question by the next inflation report in the event external risks worsen, BNR governor Mugur Isarescu said.

In its last quarterly report on inflation made public at the beginning of May, BNR revised slightly upward the yearend inflation prognosis from 5.9 percent to 6 percent while the target stands at 3.8 percent, plus or minus 1 percent.

"At this point we have no reasons to change the prognosis. We still foresee a 6 percent economic growth this year," Isarescu said.

BNR vice governor Cristian Popa said on Monday at Kiev that the central bank's initial economic growth estimate of 5.5-6 percent can be seen as "conservatory" considering that the gross domestic product (GDP) over the first quarter advanced some 7.5 percent.

The European Bank for Reconstruction and Development (EBRD) revised its estimate on Romania's economic growth for this year from 6.5 percent to 5.1 percent, in a report published on Sunday. On the other hand, the European Commission's last prognosis published on April 28, raised estimates from 5.9 percent to 6.2 percent.

The National Forecast Commssion has the most optimistic estimate for this year, betting on a 6.5 percent economic growth.

Economy and Finance minister Varujan Vosganian said in the first part of the month that Romania's economy grew 7.5 percent in real terms pver the first quarter of the year.

NewsIn