“We expect a slowdown in consumption, because salaries will no longer register double-digit growth and due to the slowdown in lending,” said Cristian Popa, BNR’s Deputy Governor.
ING justifies its forecast on economic decline by saying that external pressures are due to rise, and suggests that BNR should lower key interest. “The central bank should not remain immune to the pessimistic economic perspective, and should act more quickly,” said ING analysts.
“Romania’s economy will drop 3.5 percent in 2009, the sharpest decline in the EEMEA [Eastern Europe, Middle East and Africa] area, after Ukraine,” added ING Bank Romania analysts.
