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EIU: Romania's economy will drop 1.2% this year but will increase in 2011 

de A.C.
Vineri, 17 septembrie 2010, 17:36 English | Regional Europe

Romania's economy will drop by 1.2% this year but it will register an increase in 2011 Economist Intelligence Unit estimations conclude, quoted by the Romanian news agency Mediafax. In a report in July, EIU indicated for Romania a 0.6% drop this year and a 0.8% GDP increase in 2011. 

Romania confronts with tough austerity measures but the economy will drop by 1.2% this year, the report reads. If the government will not cut spending, political instability might follow. 

For the Balkans, a region formed by Bulgaria, Croatia, Romania and Serbia, EIU estimates a 0.2% decrease for 2010 and a 3.1% advance in 2011. In the Eastern and Central European region, in countries like the Czech Republic, Hungary, Poland, Slovakia and Slovenia, a 1.6% economic increase will be registered this year after in 2009 it dropped by 2.4%. 

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