The World Bank expects Romania s economy to grow by 2.8% in 2014 and 3.2% in 2015.
The new forecasts for Romania is better than those in the January report, which indicated a 2.5% growth for this year and a 2.7% growth for 2015.
Developing countries in Central and Eastern Europe are expected to see recoveries in 2014 as they continue to benefit from strengthening import demand from the Euro Area. GDP growth in the sub-region is expected to reach 2.5% in 2014 and 2.8-2.9% in 2015-16, up from 2.2% in 2013.
Romania is one of the largest economies in the region and World Bank say that its economy will start benefiting from stronger internal demand unlike other countries in the region where much of the growth is based on exports.
In Hungary and Romania there are clearer signs that stronger external demand is spilling over into improvements in the labor market and recoveries in domestic demand. Low inflation will allow banks to maintain accommodative policies to support the recoveries in domestic demand.
The World Bank lowered its global GDP growth forecasts for 2014 to 2.8% from 3.2% in January, with lower projections both for high income countries and developing economies.