In the previous report, the bank expected the country’s economy to contract by 6.4% in 2009 and by 2.5% in 2010. Romania’s Gross Domestic Product fell 6.2% in first quarter 2009 YoY.
The minister of finance, Gheorghe Pogea said recently Romania had experienced a sharper-than-expected economic contraction in second quarter that exceeded Q1 2009 numbers.
IMF has considerably revised its GDP growth estimates for Romania, from -4.1% to -8/-8.5%.
The National Institute of Statistics will make public the data on the country’s second-quarter economic performance.
As for the fiscal gap, it is expected to stay in the range of 7.2% of Gross Domestic Product in 2009 and around 6.3% in 2010.
According to Merrill Lynch, the National Bank of Romania is likely to reduce the monetary policy rate to 7.5% this year, from 8% as they had previously estimated. For 2010, the bank forecasts a contraction of 5.5%.
The board of National Bank of Romania has decided in its rate-setting session on August 4 to cut the monetary policy rate from 9% to 8.5% in line with analysts’ expectations but surprised the market by reducing the required reserve ratio for fx-denominated liabilities to 30%.
In lipsa unui acord scris din partea InternetCorp, puteti prelua maxim 500 de caractere din acest articol daca precizati sursa si daca inserati vizibil linkul articolului Merrill Lynch revises Romania's GDP growth estimates downward to -7.5%.