Romania's economy to accelerate 9% in 2008, central bank governor deems

Romania could witness a 8-9 percent economic growth this year on a tempered annual inflation of 6-7 percent in December, said the central bank's governor, Mugur Isarescu.

Pressure from excess demand, determined in part by the 8.2 percent economic growth in the first quarter, was a contributing factor to the inflation estimate revision from 6 to 6.6 percent for 2008, the governor said.

Isarescu described the inflation report as positive in the context of an estimated tempered inflation in the following months and an alert economic growth, on an international economic downturn.

Romania is the only country for which the European Commission revised upwards the economic growth prognosis this year.

In the last report published in April, Brussels revised the 2008 economic growth estimate for Romania from 5.9 percent to 6.2 percent. However, it foresees a more temperate advance of the gross domestic product (GDP) for 2009, to 5.1 percent, down from 5.8 percent in the estimates made public in November 2007.

NewsIn