BCR changes Romania’s economic growth forecast to 2.8%

Romanian Commercial Bank (BCR) raised Romania’s economic growth forecast for 2015 from 2.2% to 2.8%. The increase results from a increase in household consumption and the change in Romania’s economic growth forecast for 2016 from 2.7% to 3%. “A very low inflation rate, an improved situation on the labor market in the private sector and the propensity of the government to social spending are the main factors that confirm our scenario based on a strong private consumption in 2015.”, we read in a report released on Thursday by BCR. According to BCR’s analysts, the household consumption in real terms may rise in 2015 by 3.2%, compared with an earlier forecast of 2.3%, while retail sales growth outlook remains “good” in terms of a possible acceleration of consumer credit in lei. “The annual increase in average salaries rose in January by 5.5% (the moving average of 12 months), which suggest that after four years economic growth has started to deliver positive results on the labor market” has been demonstrated in the BCR’s report.Tags: