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BUCHAREST (Romania), December 27 (SeeNews) - CFA Romania, an association of investment professionals, said on Tuesday the state of the country's economy is expected to improve next year after, in their view, worsening at present.
Romania's macroeconomic confidence indicator increased slightly in November, up 0.6 points from the previous month to 65.6 points, mainly as a result of better economic conditions in 2017, CFA Romania data showed. The analysts' expectations for the next 12 months in regards to Romania's economic situations rose in November by 3.2 points on the month to 59.8 points.
However, the analysts' perception of the current economic situation worsened by 5.6 points to 77.3 points.
Also, CFA analysts said they are expecting, on average, an inflation level of 1.85% for the December 2016 - December 2017 period .
Romania's annual consumer price deflation deepened to 0.7% in November from 0.4% in October influenced by the VAT cut to 20% from 24%, in force from the beginning of 2016. At the beginning of November, Romania's central bank, BNR, kept its 2016 inflation forecast for this year unchanged at -0.4% and raised its projection for next year to 2.1%.
In regards to the exchange rate developments for the euro/leu, analysts expect a level of 4.5 lei per euro in the next six months and 4.51 lei per euro for the next year, slightly up from the levels of the previous survey.
Also, 48.5% of analysts said they expect global economic conditions to be normal, while 27.3% of respondents project an unfavourable situation and 24.2% are optimistic.
The CFA Society Romania Macroeconomic Confidence Index, first released by CFA Society Romania in May 2011, represents an indicator that aims at quantifying anticipations of the financial analysts on economic activity in Romania for a time horizon of one year.The Index takes values between 0 (no confidence) and 100 (complete confidence in the Romanian economy) and is calculated based on six questions regarding: current conditions - of business and labor market; expectations about: business, labor market, the evolution of personal income and of personal wealth at the economy level.
(1 euro = 4.5309 lei)