“The slowdown in the eurozone is already having a significant dampening effect on Romania’s exports and evidence of deleveraging from cross-border banks highlights the importance of the financial sector crisis transmission channel,” the bank said in its latest Regional Economic Prospects report.
Furthermore, the political crisis that arose in July after Romania’s ruling coalition won a vote in parliament to impeach the President could put additional pressure on short-term economic growth, EBRD said.
However, the country’s precautionary loan from the International Monetary Fund has provided an important buffer, it noted.
For 2013, the institution forecasts an economic growth of 1.8% in Romania, down from an increase of 2.6% previously estimated.
EBRD also lowered its growth estimate on southeastern Europe to 0.7% in 2012, from 1% previously.