“In our view, strong real gross domestic product numbers for 2013 mask weak domestic demand and the economy needs additional stimulus,” the lender said.
Romania’s economy expanded at an annualized pace of 3.5% in 2013, a surprising acceleration from a growth of 0.6% in the previous year. Analysts had forecast an increase of 2.8% for last year.
“Real fourth-quarter GDP grew by 1.7% from a quarter earlier and by 5.2% year-on-year, above our expectations and market consensus (of 2.6% q/q and 2.8% y/y, respectively),” Erste said.
The Austrian bank estimates Romania’s economy will increase at an annual pace of 2.3% in 2014.