Economist Intelligence Unit: weak recovery for Romanian economy in 2011

The Romanian economy is expected to grow only modestly in 2011, after a decline of 2 percent envisaged for 2010, while tough austerity measures are bound to face strong social opposition and could create instability, the Economist Intelligence Unit said in its latest global forecast Tuesday. The Balkan countries, a region that includes Romania, Bulgaria, Croatia and Serbia, are also exposed to fallout from Greece's problems because of investment, trade, remittance and banking links, the EIU noted. It said the EU newcomers are expected to post growth of 2.8 percent in 2011 and of 3.4 percent in 2012. Inflation is seen at 3.4 percent this year and at 2.6 percent next year. In the EU bloc, average economic growth is estimated at 1.6 percent for both 2011 and 2012. Mediafax