Romania's Govt Econ Advisers Raise End-'08 Inflation Fcast to 6.0%, Keep GDP Growth Fcast at 9.1%

In its final autumn bulletin, posted on its website, the CNP also said it cut its forecast for Romania's 2008 current account gap to 13.2% of gross domestic product (GDP) from 13.4% projected in its preliminary autumn bulletin released in September.

Romania's economy grew by 6.0% in 2007 and annual consumer price inflation was 6.57% in December. The country's current account gap was 14% of GDP last year.

The team of economic experts that advise the government also raised its projection for the leu currency's average exchange rate from 3.63 lei per euro to 3.67 lei per euro in 2008, compared to 3.34 in 2007.

The CNP sees Romania’s economy growing by 6.0% in 2009 and the end-year inflation slowing to 4.5%. The current account gap is seen shrinking to 12.2% of GDP next year, while the leu's average exchange rate is projected at 3.60 lei per euro.

In August Romania's central bank, BNR, raised its 2008 inflation forecast to 6.6% from an earlier 6.0%, and the 2009 forecast to 4.2% from a previous 3.5%. The BNR will present its quarterly inflation report on Thursday.

The CNP releases two macroeconomic forecasts a year, in the spring and in the autumn.