Analysts: Romania's economic growth halves in 2009

The economic growth will slow down next year, dropping to less than half as against the rate in 2008, which is estimated to more than 8 per cent, Antena 3 TV informs. The first signs of the economic growth slowing down are to be experienced starting with the last quarter of the year, since GDP lowers to 6 per cent, according to experts. The opinions of analysts in relation to the first quarter of 2009 are different.

Some of them expect even economic recession in Romania. And this considering that high public expenditures are expected, at a budgetary deficit of close to 5 per cent of GDP and an increase in public debt to more than 16 per cent of the gross domestic product. Foreign analysts believe that the GDP growth rate reduces and it will be highly dependent on loan disbursement rate, which has not been high so far.

The Romanian experts think that the last quarter of this year could be poorer than we have been accustomed for so long. Even so, the fourth quarter in Romania will be much better than in the countries of the region. According to analysts, the service sector will be strongly affected by crisis, mainly in relation to financial brokerage, along with constructions, industry.

On the other side, the experts believe that agriculture could have an important share within the economic growth. A sudden hold in lending activity would result in a negative impact on the economic activity, analysts warn.

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