Romania will see an economic growth of 0.8% this year compared to 7.3% in 2008, with a current account deficit of 10.6% of the GDP, a Standard&Poor's report reads, quoted by Romanian news agency Newsin. This comes as economic growth in the region has been slowing down because of the credit crunch and a quick decline of economic activities.
As in the rest of the region, the economic growth of Romania was supported by domestic demand, fueled by an expanding credit market,. which led to a boom in consumption and investments, but also to excessive debt and overheating, the report says, as quoted by Newsin.
S&P's expects Romania to see a more substantial economic growth in 2010, when the GDP will grow by 1.8%, while the pace of economic growth will reach 3% in 2011.
