Romania’s economy is expected to register a 4.2% growth this year, and the economic growth will decrease to 3.6% next year, according to the latest forecasts released on Thursday by the European Bank for Reconstruction and Development (EBRD).
Compared with previous forecasts in May, EBRD has revised down the estimates on the Romanian economy by 0.4 percentage points this year, from 4.6% to 4.2%, and by 0.6 percentage points for next year, from 4.2% to 3.6%, evz.ro reports.
The EBRD argues that economic recovery continues in most of the countries where it invests, but risks remain due to global trade tensions, to high indebtedness of companies and to geopolitical instability. EBRD expects the economies in which it invests to grow by 3.2% in 2018 and by 2.6% in 2019, in both cases the forecasts being revised downwards due to the slowdown of the Turkish economy.
The financial institution warns, however, that a UK exit from the European Union without a deal on trade and investment would affect most the South Eastern European countries in the regions where the EBRD invests.