Stratfor prognosis: Romania is prone to economic collapse

Miercuri, 29 octombrie 2008, 17:34 English | Business

Romania is one of the most vulnerable countries to an economic collapse, according to the Stratfor prognosis for the fourth quarter of the year, Romanian news agency NewsIn informs. According to this prognosis, Europe will be hit even harder than the States and Russia will take advantage of the situation to increase its influence through energy prices. 

Europe's financial crisis will affect the whole European banking system and each country will have to fight on its own if European leaders will fail to agree upon a common strategy, American experts warn.

Strategic Forecasting (Stratfor), a private information service in the US, also known as the "shadow CIA", warns that those vulnerable countries in Europe, including Romania, are on the brink of financial collapse. Romania, among Hungary, Croatia, Slovakia and Serbia are considered to be most vulnerable to a financial crisis.

In a separate analysis, released shortly after Standard&Poors decreased Romania's country rating, Stratfor's report read that Romania is not worse than Hungary but it faces big problems itself as the liquidity deficit is more acutely felt.