Business in Romania

Posts 1-1 of 1

Jackie Bojor Group moderator
The company name is only visible to registered members.

Romania’s GDP to grow 4.4 pct in next 10 years, Merrill Lynch says
According to recent publications quoting Merrill Lynch, Romania’s GDP to grow 4.4 pct in next 10 years.

The Romanian Gross Domestic Product will grow at an average 4.4 percent per annum in the next 10 years, with the capital inflows and productivity likely to make the most important favorable contribution, while the labor costs will have a negative impact, shows a Merrill Lynch report carried by the Ziarul financiar and Business Standard dailies.
The specialists forecast the Romanian GDP will post a potential growth of 3 to 6 percent in the coming 10 years.
Romania had an above-the-potential economic growth that led to overheating and this is a reason why it may slowdown significantly, the report says.

In Central and Eastern Europe the economic growth will stay significantly higher than in the euro area in the next decade, but the average pace of 3.5 percent will be lower than the 4 percent average annual advance seen in the previous 10 years. Europe’s emerging economies face two major challenges, namely to keep a high pace of the productivity rise and the population’s getting older, Merrill Lynch says.

The direct foreign investments will remain of a critical importance, alongside the EU funds, but they will post a structural decline in the coming years, since a large part of them were attracted as a result of the privatization deals in the region.

Romania, alongside Turkey, will be the best destination for the direct foreign investments in Emerging Europe, Middle East and Africa. Merrill Lynch experts do not expect a major structural change of the financing for the states in this region, as most of them can sustain high budget deficits, the report stresses.

What is your opinion on this?

Jackie Bojor
FRD Center - http://www.frdcenter.ro
- 09 Jul 2009, 3:24 pm
Jackie Bojor wrote: > According to recent publications quoting Merrill Lynch, Romania’s GDP > to grow 4.4 pct in next 10 years. > > The Romanian Gross Domestic Product will grow at an average 4.4 > percent per annum in the next 10 years, with the capital inflows and > productivity likely to make the most important favorable > contribution, while the labor costs will have a negative impact, > shows a Merrill Lynch report carried by the Ziarul financiar and > Business Standard dailies. > The specialists forecast the Romanian GDP will post a potential > growth of 3 to 6 percent in the coming 10 years. > Romania had an above-the-potential economic growth that led to > overheating and this is a reason why it may slowdown significantly, > the report says. > > In Central and Eastern Europe the economic growth will stay > significantly higher than in the euro area in the next decade, but > the average pace of 3.5 percent will be lower than the 4 percent > average annual advance seen in the previous 10 years. Europe’s > emerging economies face two major challenges, namely to keep a high > pace of the productivity rise and the population’s getting older, > Merrill Lynch says. > > The direct foreign investments will remain of a critical importance, > alongside the EU funds, but they will post a structural decline in > the coming years, since a large part of them were attracted as a > result of the privatization deals in the region. > > Romania, alongside Turkey, will be the best destination for the > direct foreign investments in Emerging Europe, Middle East and > Africa. Merrill Lynch experts do not expect a major structural change > of the financing for the states in this region, as most of them can > sustain high budget deficits, the report stresses. > > What is your opinion on this? > > Jackie Bojor > FRD Center - www.frdcenter.ro

Business in Romania

Romania’s GDP to grow 4.4 pct in next 10 years, Merrill Lynch says