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%.