Analysts predict the Romanian economy to grow by some 0.7 to 2 percent over the course of 2011. The IMF, the European Commission and the Romanian Government through its state budget law for this year forecast a growth of 1.5 percent. The same law also predicts a budget deficit of 4.4 percent of the GDP and an inflation rate of 5.3 percent. In addition, for 2012, experts estimate an economic growth of some 4 percent.

According to a study by UniCredit, the Romanian economy will grow by 1.7 percent this year, mostly as a result of the solid increase in exports. This may improve the country’s credit ranking. UniCredit experts also say domestic demand will make a slight comeback in the second half of the year, contributing to the predicted 1.7 economic growth.

Foreign investments can also contribute to economic growth in Romania, according to Eugen Radulescu, a director with the National Bank of Romania: “Foreign investments should normally increase in 2011, because the measures adopted in 2010 as well as the Labour Code, which is now more flexible, should have a favourable impact on investors’ interest in investing in Romania. They should have a favourable impact on the unemployment rate as well.”

Mention should be made that a report made public by the Austrian group Erste, direct foreign investments could be resumed in Romania concurrently with the global economic recovery, particularly in sectors like industrial goods, agriculture and the food industry, the IT& C area and renewable energy.