The European Bank for Reconstruction and Development (EBRD) Thursday revised upward its forecast for Romanian economy to minus 2 percent in 2010, from a contraction of 3 percent previously estimated, citing slightly improvements over recent months.  In its latest economic outlook, the EBRD said Romania has managed to remain "on course" with its EUR 20 billion IMF-led program by implementing austerity measures that will keep the fiscal accounts under control. "However, the Romanian economy seems certain to decline again overall this year before returning to modest growth next year," it said.

For 2011, EBRD revised its growth forecast on Romania to 0.9%, compared to zero growth previously. The bank said the southeast Europe continues to lag behind other regions in terms of the pace of recovery from the crisis, with the exception of Turkey, where growth is now proceeding at a rapid pace. "The one bright spot is the external sector, where exports in most countries are growing rapidly reflecting both a base effect from the deep slump in 2009 and renewed global demand for key exports from the region," the report noted.

Mediafax