In July, the EBRD saw Romania’s gross domestic product up 0.8% this year, after a 2.5% advance in 2011.
In its latest Regional Economic Prospects report published Friday, the bank said Romania’s GDP growth should reach 1.9% in 2013, slightly higher than in the summer report.
“The slowdown in the eurozone, significant drop in agricultural output and the heightened political uncertainty have had significant dampening effect on Romania’s growth this year,” the EBRD said Friday.
“GDP is currently forecast to increase by only 0.5 per cent this year, despite the strong second quarter.” Romania’s economy grew at an annualized rate of 1.1% in the second quarter of 2012.
The EBRD also note that financial support from the International Monetary Fund and other international financial institutions has provided “an important buffer, especially in light of the country’s strong financial linkages with the eurozone.”
The IMF expects Romania’s economy to post a 0.9% growth in 2012, followed by a 2.5% rise next year.
According to the EBRD, growth in its 29 countries of operation is expected to drop from 4.6% in 2011 to 2.7% this year, as the eurozone crisis continues to affect economies in the transition region.
“Most countries in central and south-eastern Europe as well as Ukraine will likely see lower growth than previously forecast as the baseline outlook for the euro area has worsened further,” the bank said in its report.