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Friday, October 15, 2004

2005 Budget Draft Forecasts 5.3% Growth And 7% Inflation

The Government yesterday endorsed the draft of the consolidated budget for 2005.

The draft sets targets for deficit of 1.5% of GDP against economic growth of 5.3%, inflation of 7% and a current account deficit of 5.4% of GDP, announced Public Finance Minister Mihai Tanasescu.

So, the inflation target was revised upwards from 6% to 7%, calculated for December 2004-December 2005, the estimated current account deficit is 0.2% higher in terms of GDP than agreed upon with the International Monetary Fund and the predicts economic growth will be 0.1% higher than initially calculated.

In this case Romania would have the highest growth in Europe this year at 7.6%.
In the same time inflation was up again increased by 0.9% in September, reaching 6.6% for the first nine months of the year.

If the target for the year of 9% is to be achieved, price increases over the next three months cannot exceed 2.2%, or monthly increases of 0.7%-0.8%.

Posted by Iulia Rasoiu : 10/15/2004 04:54:00 pm