World Bank: Romania, among the Central-Eastern Europe countries which applies ample restructuration methods

Newsroom 13/01/2011 | 13:20

The World Bank has included Romania among developing economies in Central and Eastern Europe that are applying the most ample restructuration methods, according to the report Global Economic Prospects 2011.

Along with Romania, there are also Bulgaria, Kazahstan, Lithuania, Russia and Ukraine.

The World Bank anticipates that Romania will post this year an economic growth of 1.5 percent. In 2012, the World Bank expects Romania to have a growth of 4.4 percent, which is in line with estimations by the International Monetary Fund (IMF).

The World Bank also expects Romania to post a current account deficit of 6.4 percent of the GDP. This is expected to reach 6.5 percent in 2012. The current account deficit in 2010 was 6.3 percent of the GDP.

Estimations of total losses during the crisis confirm that differences between the production potential and the actual level of production have disappeared or are about to, at world level.

Thus, in countries with high revenues there is a difference in production of 2 percent while in developing regions, except Europe and Central Asia, it is under 1 percent.

Even in this region, production capacities in excess are concentrated in six states- Romania, Bulgaria, Kazahstan, Lithuania, Russia and Ukraine.

Similarly, the production deficits are concentrated in countries with excess activities in periods of economic boom, including economies in transition such as Hungary and the Czech Republic.

Otilia Haraga