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Sinca (BCR): Romania’s current account deficit might grow to 1.3% in 2014

Romania’s current account deficit may grow slightly to 1.2-1.3% in 2014, from 1% in 2013, Eugen Sinca, the BCR senior analyst, vice-president of AAFBR told AGERPRES on Monday.“The slight increase of the current account deficit in 2014 is caused by the minor improvement of investments and consumption in a period when credits in lei grow, following the relaxation of BNR monetary policy. Anyway, Romania passed in 2013 to a secure area of the balance of payments with a current account deficit below the level of 4% of GDP as average of the last three years, requested by the CE monitoring procedure for macroeconomic unbalances,” SInca explained.

 

The analyst also estimates that the profitability of state bonds for5 years will grow by 0.5% until the end of 2014, on the background of withdrawal of FED monetary stimuli and inflation increases in the second semester.“The increase we foresee now is lower than the one foreseen a few weeks ago. The factor which determined us to estimate a slower increase of profitability was the issue of bonds in US dollars which cover 10% of the gross financing needs of the Finance Ministry for the entire 2014 and makes possible the reduction of issues in lei in the domestic market,” Sinca said.

 

For this year the analyst estimates that Romania may register an economic growth of 2.3%.

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