Citi forecasts 2% growth for Romania in 2011, low impact of German slowdown

Romania's economy is expected to grow 2 percent this year on last year, according to a report from Citi. This is one of the lowest performances of a Central and Eastern European country included in the report. The lowest growth rate is expected to come from the Czech Republic, of 1.9 percent, according to Citi analysts. Citi's analysis assesses the impact of the slowdown in economic activity in Germany on the emerging markets in Central and Eastern Europe. Because Romania and Poland's ratio of exports to Germany to GDP is of only 7-10 percent, these two countries would be least affected by the economic slowdown in Germany, with only 0.2 to 0.3 percent for Romania and Poland respectively. Analysts believe that the importance of Germany's trade with the countries of Central and Eastern Europe has declined in recent years, "except for Romania". Irina Popescu, irina.popescu@romania-insider.com