The budget revision entails an average exchange rate of 4.3 lei/euro, inflation of 5.8%

The budget revision adopted by the Romanian Cabinet the past weekend triggers an average inflation of 5.8 percent this year, up from the previous 5 percent target included in the former budget which will go hand in hand with a revised exchange rate of 4.3 lei per euro, from 4, NewsIn informs.
The budget the Parliament passed on February 20 pinned inflation at 5 percent and the leu at 4 over the single European currency. However, since then economic realities worsened and unemployment rose.

Romania’s revised budget was built on a 4 percent economic contraction, a gross domestic product of 531.25 billion lei and a 4.6 percent budget deficit, finance minister Gheorghe Pogea said today.

In the first three months this year the medium exchange rate stood at 4.2662 lei per euro.

The Finance Ministry envisions a 15 percent cut of exports this year and 25 percent drop of imports. The current account deficit is expected to narrow to 7.5 percent of the gross domestic product, from more than 12 percent last year.

In the first two months this year the current account gap reduced by 75.5 percent to 614 million euros after the trading gap narrowed down significantly.

However, another thorny problem remains – the worrying hike of the unemployment rate in the past months, adding to it the pessimistic estimates pointing to 600,000 unemployed this year.

Te-ar putea interesa si:

Mai multe articole din sectiunea English »