CNP: Inflation at 5.4% in December

Industrial output will increase by 5.2% this year, while the constructions sector will increase by 22% and both register slower rates than in 2006, according to the latest estimates of the National Forecast Commission (CNP). However, industry will rise by just 5.2% this year (compared with 5.4% in 2007), and the construction sector by 22% (compared with 33.6% last year). CNP puts this year’s economic growth at 6.5%, above last year’s 6% growth. The explanation for this is that last year’s drought caused the Gross Domestic Product (GDP) to decline, which cannot happen again this year, according to Ion Ghizdeanu, chairman of the CNP. The growth, estimated at 6.5% for this year, has remained unchanged since the CNP’s previous assessment bulletin, issued last autumn. “However, it is possible that, in the coming weeks, when we publish the definitive spring forecast, we will revise our estimates upwards on economic growth and on the structure of the GDP,” Ghizdeanu has said recently. The CNP has already revised this year’s inflation forecast upwards, to 5.4% (December 2008, against December 2007), and to 7% (the 2008 average, against 2007).