Romania's economic growth potential up to over 6% a year

The Romanian economy has a growth potential of almost 7% growth over the next few years, an increase from less than 6%, which has been the norm in recent years, the National Forecasting Commission (CNP) says. The growth potential increased as a result of foreign investment and of the productivity gain, Ion Ghizdeanu, CNP chairman, told a seminar discussing macroeconomic issues. He sees the growth potential of the Gross Domestic Product at close to 7% a year until 2009. “This potential can be achieved, provided that no problems arise,” the head of the National Forecasting Commission stated yesterday. The potential estimated for this year is 7.1% and economic growth is expected to stand at 7%. According to Ghizdeanu, agriculture is the only variable that can affect economic forecasts. “Agriculture is in a precarious condition at the moment and (as such) it is the only sector that can generate oscillations that could be problematic for a European economy,” Ghizdeanu says. This year’s economic growth beyond the average of the last few years has been driven by industry, which has been delivering above its potential. Official forecasts put the growth potential of industrial output at 5% this year, yet preliminary data shows industrial output may very well end the year with a 6.7% – 6.8% growth.