Romania's forecast for 2008

Gross Domestic Product (GDP) amounting to €130 billion, inflation of 4.5-6 percent, lower foreign investment, and depreciation of the leu make up estimates by analysts for 2008, according to an analysis carried out by Business Standard.

Businesspeople and bankers foresee that the insurance sector will continue to register losses, in spite of a 30 percent rise in gross premiums subscribed. Another sector slowing down will be the textile industry, and a 10-15 percent drop is expected, especially after the ban on Chinese textile imports ends.

Alternatively, highest growth rates are expected in the Real estate area and in agriculture, of 100 percent and 60 percent, respectively.

High profit margins are also expected in recruiting services, human resources and training (30-40 percent), followed by real estate (20-25 percent), tourism (15-20 percent), IT (10-15 percent), and banking (also 10-15 percent).

Other industrial fields are likely to register modest growth or to stagnate this year: pharmaceuticals, furniture production (0-5 percent), shipyards (5-6 percent), food industry (1-2 percent), and the car industry (2.5-15 percent).

The highest rises in salaries are expected for construction workers and employees in the cement industry (25 percent higher, compared to 2007), and training (25-30 percent).

Business Standard