The European Bank for Reconstruction and Development (EBRD) revised downwards its economic growth forecast for 2009 in its activity zone (former communist countries in Eastern Europe and USSR).
As for Romania EBRD forecasts a 4 percent contraction of the Gross Domestic Product (GDP) in 2009, under conditions in which its previous estimations, released in January 2009, estimated an economic growth of 1 percent in 2009, EBRD informs in a release.
Both the International Monetary Fund and the European Commission estimate that this year Romania will register a 4 percent contraction of the GDP.
According to EBRD, Romania is seen as having the most marked economic decline in 2009 amid the South-Eastern European countries, the outlook for Serbia and Bulgaria assuming a 3 percent contraction and the average contraction for the entire South-Eastern European region – 3.2 percent.
In exchange, EBRD estimates that last year Romania recorded a GDP growth of 7.1 percent, the highest growth pace in 2008 of a country in Central and South-Eastern Europe, the Baltic states included. After a contraction of 4 percent this year, EBRD sees a weak economic growth in Romania, of 0.4 percent, in 2010.
EBRD is the largest institutional investor in Romania, with a total of 3.8 billion euros, into 249 projects. In cooperation with its numerous partners, the bank mobilized more than 7.2 billion euros for the projects implemented in Romania.