Coface estimates economic growth to slow to 5.2%

Coface business advisory company estimates that Romania’s economic growth will slow to 5.2 percent this year, against a backdrop of deepening macroeconomic imbalance, according to an announcement on Wednesday by company representatives.

As such, Coface foresees the budget deficit reaching 3.2 percent of gross domestic product (GDP) in 2008, above the maximum threshold of 3 percent of GDP required by the European Commission. In 2007, the public deficit was 2.4 percent of the GDP, according to data released by the Ministry of Economy and Finance.

Meanwhile, the current account deficit could reach 14.6 percent of GDP due to a deepening commercial imbalance up to €32.6 billion in 2008, from €28.2 bln last year, according to Coface estimates.