Impressive figures for 2003

The Development and Prognosis Ministry (MDP) estimates Romania’s economic growth to reach 5.2% this year, as it will be again fuelled by exports and investments. The gross fixed capital formation will grow 9% in 2003, following a 4.8% increase in the overall domestic demand. Exports of goods and services are projected to increase by more than 10%, in addition to a slowdown in the imports of goods and services, which will lead to a positive net export contribution to the GDP growth in real terms. Imports of goods and services will go up by about 8.5%. The authors of the forecasts, however, reserve the right to slightly modify them in late February, when the accurate 2002 data become available. The industry is estimated to grow by 6.5% in 2003 compared with 2002, when the anticipated growth pace reached 6%. MDP predicts the processing industry will lead the country’s industrial development at an about 7.6% average growth pace. The industries expected to grow faster than the average are as follows: foodstuffs (12.2%), clothing (9.8%), furniture (8.5%), road vehicles (8.2%), electrical plant and equipment (8.0%), oil processing (7.8%), cellulose and paper (7.6%), plant and equipment (7.4%) and metal processing (7.0%). The 2003 agriculture forecasts are based on a 5% total yield growth scenario, higher than the figure anticipated for 2002. Exports of goods are projected to go up by 10.2%, with the main product categories expected to grow by 14.3% (exports of machine building industry products), and 12.8% (exports of light industry products). Imports are estimated to increase by 8.4%, considering Romania’s dependence on the increase in the imported energy resources and the need to support the investment process by transfer of foreign technology. MDP also anticipates the price taming process to continue this year, with the inflationary rate set to reach 13%-14% by yearend (December 2003/December 2002). ZF