UK analysts: Romania’s economy will grow by 3%

Romania’s economy will grow by 3% this year and by 3.3% in 2016, according to the British consultancy Capital Economics. The increase in the internal demand will compensate for the Eurozone’s weak economy, analysts say, reports local Mediafax. However, Romania has the potential to grow by 4% on the long-term, same as Bulgaria, Poland, and Turkey. The fiscal policy will be more relaxed this year compared to 2013, due to the decrease in consumer prices. The decline in oil prices will slow down the inflation, which will generate a growth in household incomes. This would allow the Romanian National Bank to reduce the monetary policy by another 0.25 percentage points, to 2%, reads the Capital Economics report. The inflation rate will reach 0.8% this year and 1.8% in 2016. By comparison, the inflation rate dropped to a record low of 0.83% in 2014. editor@romania-insider.com