Romania’s economic growth pace to brake 1-2% to avoid overheating, central bank governor says

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Romania’s economic growth pace to brake 1-2% to avoid overheating, central bank governor says

However, Isarescu noted the economic growth will only slow down a bit, not stop, stimulated especially by the continuous investments in the country.

The slow pace of the country’s economy was noticeable this year when the Gross Domestic Product rose 5.8 percent in the first half and is estimated to hike 6 percent the most, compared to the 7.7 percent increase last year, the governor noted.

The stationary trend in the economy was mostly caused by the severe drought this summer which plagued summer and fall crops in many parts of the country. However, the slowdown was partially offset by the boom in the constructions industry, Isarescu said.

He stressed the central bank is to adopt a prudent attitude towards the economy in a bid to protect it from indirect effects of the credits crisis on the U.S. housing market which has had dramatic impact on global markets, including the stocks ones.