Romania's central bank reaffirms positive outlook for economic growth in 2008

The Central Bank of Romania (BNR) sees no reason to modify inflation and economic growth forecasts for 2008, according to BNR Governor Mugur Isarescu. However a revise is not out of the question by the next inflation report in the event of external risks worsening.

In its last quarterly report on inflation made public at the beginning of May, the BNR revised slightly upward the year-end inflation prognosis from 5.9% to 6% while the target stands at 3.8 ± 1%.

"At this point we have no reasons to change the prognosis. We still foresee 6% economic growth this year," Isarescu said.

BNR vice governor Cristian Popa said on Monday at Kiev that the central bank's initial economic growth estimate of 5.5-6% can be seen as "conservative" considering that the gross domestic product (GDP) over the first quarter advanced some 7.5%.

The European Bank for Reconstruction and Development (EBRD) revised its estimates of Romania's economic growth for this year from 6.5% to 5.1%, in a report published on Sunday. On the other hand, the European Commission's last prognosis published on April 28, raised estimates from 5.9% to 6.2%.

The National Forecast Commssion has the most optimistic estimate for this year, betting on a 6.5% economic growth.

Economy and Finance minister Varujan Vosganian said, in the first part of the month, that Romania's economy grew 7.5% in real terms in the first quarter of the year.