EC slashes Romania's 2012 economic growth forecast down to 1.6 percent

The European Commission revised downwards Romania's economic growth forecast for this year, to 1.6 percent, from a previous estimation of 2.1 percent. The country's economic increase would still be among the highest in Europe, and well above the estimated 0.3 percent recession for the eurozone. The most optimistic forecast went to Poland, with an estimated increase of 2.5 percent, followed by Lithuania, with 2.3 percent. Latvia comes next with 2.1 percent. Romania's estimated GDP growth in 2012 will outrun Germany, which could see only a 0.6 percent increase in its economy, according to the EC. France was placed in a similar zone, with a predicted 0.4 percent increase for 2012. UK and Sweden have been placed under a 0.6 and 0.7 percent increase forecast, respectively. Greece ranks last, with a predicted 4.4 percent drop. Inflation is expected to reach 3 percent in Romania this year, one of the highest figures in the EU. Hungary tops the chart with an inflation rate of 5.1 percent, followed by Poland, with 3.5 percent. Romania is on a par with Bulgaria, and close to Estonia – 3.1 percent inflation. The European Commission expects moderate growth to return in the second half of this year, after the stalling of growth in late 2011, which is likely to spill over into the first two quarters of 2012. "Although growth has stalled, we are seeing signs of stabilization in the European economy. Economic sentiment is still at low levels, but stress in financial markets is easing. Many of the steps that were essential to deliver financial stability and to establish the conditions for more sustainable growth and job creation have now been taken. With decisive action, we can turn the corner and move from stabilization to boosting growth and jobs,” said Olli Rehn, Commission Vice-President for Economic and Monetary Affairs. Full report here. editor@romania-insider.com