http://www.rgemonitor.com/blog/economonitor/245513
Rocky Road Ahead for Romania Mary Stokes | Feb 22, 2008 Romania's economic prospects seemed bright as it entered the EU to great fanfare in January 2007. Just over a year later, massive imbalances have clouded Romania's sunny economic picture. <http://www.rgemonitor.com/redir.php?sid=1&tgid=0&cid=232481> Danske has classified Romania in the 'danger zone' for a hard landing, while <http://www.rgemonitor.com/redir.php?sid=1&tgid=0&cid=241477> Fitch downgraded its outlook on Romania to 'negative' from 'stable' earlier this month. Analysts, like those at Danske and Fitch, have pointed to Romania's massive current account deficit (estimated at -14% of GDP for 2007) as the main economic risk. Meanwhile, the country's ever climbing inflation rate (which came in at 7.3% y/y for January 2008 - the fastest pace in 20 months) suggests GDP growth, which is estimated at just under 6% for 2007, is well above its potential rate. Like its neighbor Bulgaria, Romania is clearly overheating. The question is will Romania get its act together in time to avoid a hard landing. Here are some reasons that suggest it won't. [...] (continued at <http://www.rgemonitor.com/blog/economonitor/245513> http://www.rgemonitor.com/blog/economonitor/245513) Copyright C 2008 Roubini Global Economics, LLC. ---------------------------- Vali "Noble blood is an accident of fortune; noble actions are the chief mark of greatness." (Carlo Goldoni) "When the power of love overcomes the love of power, the world will know peace." (Jimi Hendrix) Aboneaza-te la <mailto:[EMAIL PROTECTED]> ngo_list: o alternativa moderata (un pic) la [ngolist] Please consider the environment - do you really need to print this email?
