Foreign analysts: Shades looming over Romanian economy

Marţi, 4 decembrie 2007, 13:02 English | Business

Foreign analysts expect the economic perspectives of Romania to worsen in the following period, as there is a general pessimistic trend for the whole Eastern European region, an Erste Bank report shows, quoted by Romanian news agency NewsIn. Almost three quarters of analysts expect a deepening of the inflation in the following six months.

Experts argue that the situation is much worse than initially expected. The only country in the region that witnessed a deeper fall than Romania has is Hungary, where pessimism rose by 14.3% reaching 41.2% while in Romania it amounts to about 26%.

Analysts say that both the short and long term interest rates will increase considerably unlike those in Hungary that are expected to fall.

Concerning the economic evolution in the region, the ZEW index measuring the trust in the Eastern European countries fell by 6.3 points in November resulting  – 17.7 points. The index balances both the negative and positive evaluations regarding the future evolution of EEC market.