“Economic activity should pick up in 2013, helped by stronger domestic demand and a modest recovery in exports,” BRD said in its autumn economic outlook report.
The bank estimates an economic growth of 2% in 2013, up from 1.8% initially envisaged.
Romania will likely miss its budget deficit target in 2012, due to a worsening economic outlook and expected fiscal slippages ahead of the parliamentary elections scheduled for December, BRD said.
The lender forecasts a budget gap of 2.5% of GDP in cash terms, above the government’s target of 2.2% of GDP.
The annual inflation is estimated at 5.2% in December, well above the central bank’s target band of 2%-4%.