In its latest report on economic prospects in central and southeastern Europe, the EBRD revised downward its forecast on Romanian economic growth to 1.1% in 2012 from 3.8% previously, citing the country’s extended exposure to the Greek economy.
“The lower growth estimate on the gross domestic product is not specific to Romania alone, but a problem for all Europe. Many analysts at the International Monetary Fund have cut their GDP estimates for Romania and for other countries in Europe, because of falling exports on the backdrop of the problems in the euro area,” Pendred said Wednesday.
She said Romanian exports are bound to decline in the coming period, as most of them go to the states in the European Union.
On Tuesday, the EBRD cut its growth forecast for the 29 countries in which it invests to 3.2% in 2012, from 4.4% expected in its July report.
The downward revision reflects the prospect of much slower growth in central and southeastern European countries, which are particularly vulnerable to eurozone stress, EBRD said in its report.
The outlook has worsened the most for Albania, Romania and Serbia, which are heavily exposed to the troubled Greek economy.