Romania is one of the most vulnerable countries in the context of the international financial turbulences, the latest global prognosis of Economist Intelligence Unit, quoted by Rador. EIU also made more pessimistic prognosis about the European and the US economic zone. Regarding Romania, the report warns on the high need of the state for foreign financing.
The Romanian state will have a current account deficit over 10% during the prognosis period (until 2013), fueled by the economic growth and the accelerated domestic consumption.
Romania's financing needs are around 30% of the GDP, the report considering that the financing was made through direct foreign investments, a trend that will become more and more difficult to upkeep, as privatization ends. Another weakness is the depreciation of the national currency, RON, since most foreign debt is denominated in euro. Romania is one of the most vulnerable countries in the context of the international financial turbulences, the latest global prognosis of Economist Intelligence Unit, quoted by Rador. EIU also made more pessimistic prognosis about the European and the US economic zone. Regarding Romania, the report warns on the high need of the state for foreign financing.
The Romanian state will have a current account deficit over 10% during the prognosis period (until 2013), fueled by the economic growth and the accelerated domestic consumption.
Romania's financing needs are around 30% of the GDP, the report considering that the financing was made through direct foreign investments, a trend that will become more and more difficult to upkeep, as privatization ends. Another weakness is the depreciation of the national currency, RON, since most foreign debt is denominated in euro.
