“Despite the gloomy outlook in the Euro Area, some countries in central and eastern Europe have been gaining momentum. Hungary and Romania, the first two countries that started with tough consolidation in 2009 and the first to successfully exit the excessive deficit procedure this year, can take a breath, Erste said in its latest CEE Equity Strategy report.
Erste forecasts Romania’s economy will expand by 1.8% this year with upward potential to 2.2% in the case of a good agricultural harvest. For 2013, the Austrian lender expects a growth of 2.3% in Romania.
The bank estimates consumer price will drop more visibly in the second half of the year, bringing the annual inflation rate toward 3.6% in December.