Modest economic growth, crisis until 2016

Modest economic growth, crisis until 2016

 

According to the next three years’ Convergence Programme, in 2013 the economic growth will stand at 1.6 pc, not at 3.1 pc as initially forecast. Domestic demand will continue to represent the engine of economic growth. Joining the eurozone still uncertain.

The government’s prognoses and macroeconomic targets have significantly worsened in the Convergence Programme 2013-2016 compared to last year’s edition of the document. The government has dramatically lowered its economic growth forecast for 2013 from 3.1 per cent to 1.6, for 2014 from 3.6 per cent to 2.5 per cent and for 2015 from 3.9 per cent to 2.8 per cent, the programme posted on the Public Finance Ministry’s website and adopted by the government on Tuesday shows. The programme will be sent to the European Commission in this form. “Considering the international economic context and the economic and financial developments in the Euro Area, for 2013 the prognosis scenario entails a GDP growth of 1.6 per cent. Information on economic developments in many countries in the EU and other areas are still pessimistic and reveal the continuation of the economic crisis and the lowering of the economic growth level, which can indirectly affect Romania’s economic growth too,” the document shows.