Romania's Unicredit revises downward prognosis on C/A deficit this year to 14.2% of GDP

The previous projection was 14.8 percent of GDP but the lender improved it on expectations the nominal GDP would hike. Also more alert pace of exports than imports was seen as a good sign.

GDP stood at 404.7 billion lei (121.3 billion euros), almost 24 billion euros more than in the previous year, following the strengthening of the leu.

The National Forecast Commission (CNP) estimates GDP of 475 billion lei for 2008. On the other hand, Unicredit maintained its previsions of economic growth for this year at 5 percent which could mean the tempering of the advance seen last year (6 percent). CNP said 6.5 percent.

Unicredit also maintains its yearend inflation estimates at 5.8 percent from almost 6.6 percent in December 2007. For 2009 Unicredit foresees inflation of 4 percent, closer to the central bank's target of 3.5 percent, plus or minus 1 percentage point.

Unicredit analysts gauge average inflation to stand at 7.4 percent this year from 4.84 percent last year and then temper to 4.6 percent in 2009. Analysts also estimate the strengthening of the leu against the euro to 3.58 by the end of the year.

Source: NewsIn