The European Commission spring forecast, presented on Monday in Brussels notes that Romania's economy got worse compared to the January 2009 forecast. The Commission reveals that Romania will not register an economic growth in the following two years: for 2009 the economy will register negative indicators of -4% and in 2010 -0%.
In January the Commission estimated a 1.75% increase in 2009 and 2.5% in 2010. Unemployment rates will increase to record values in 2009 and 2010, from 5% to 8%. In 2009 and 2010 inflation will drop as the minimum average salary grew and as international prices on raw materials dropped. By the end of 2009, the inflation will most probably reach the World Bank estimates of 3.5%.
Romania's budgetary deficit will be cut in 2009, to 5.1% of GDP compared to 5.4% in 2009. In 2010, it will increase to 5.2%.
