It is the second negative revision in the past six months. In October 2011, BRD cut its 2012 economic growth estimate from 2.8%.
“Private consumption rebounded in 2011 above our initial expectations, and measures are taken to support its recovery, given that the EMU sovereign debt crisis will weigh on Romania’s exports dynamics (…). We expect private consumption to expand by 2.5% year-on-year in 2012, while fixed capital formation has the potential to advance by 6.5% year-on-year,” BRD said in its spring economic outlook report.
BRD, Romania’s second largest bank by assets, forecasts private consumption will recover at a relatively fast pace in 2012, supporting economic growth.
Net exports contribution will remain negative, while investments and a certain extent private consumption will remain the main drivers for the gross domestic product growth, the bank said.
BRD forecasts an economic growth of 3.1% in 2013, slightly down from 3.3% previously envisaged.