“Until recently, Romania’s economy was on track to record robust growth in 2012, after a modest recovery in 2011. However, the slowdown in the eurozone is already having a significant dampening effect on Romania’s exports, and further weakening is likely in the coming months,” the bank said in its latest Regional Economic Prospects report.
The EBRD lowered slightly its growth forecast for the 29 countries in which it invests to 3.1% in 2012, from 3.2% previously, and warned that Hungary and Slovenia are likely to slip back into recession this year.
The projected regional slowdown in 2012 is largely due to significantly weaker growth in central and south-eastern Europe, which is particularly exposed to eurozone stress, EBRD said in its report.