TheEuropean Commission expects investments to pick up next year, andbecome one of the drivers of the economy, with net exports to havea negative contribution, but warns about the risks of suspendingfiscal consolidation measures.
"After falling severely in 2009 and 2010, investment should pickup vigorously, by 4.2%, and is expected to be a main driver ofgrowth as companies re-adjust their production lines to meet theincreased external demand. Exports have maintained their strongmomentum throughout 2010, and together with the jump in industrialorders, this development is expected to re-assure companies," readsthe autumn economic forecast of the European Commission.
However, imports will again rise faster than exports, so theimpact of exports on the GDP will be negative.
Brussels' executive arm anticipates a 1.9% economic decline thisyear, followed by a 1.5% rise in 2011, fuelled mainly byinvestments, with forecasts being similar to IMF estimates.
Investments are expected to climb 4.2% next year, after fallingby 25.3% and 9.9% in 2009 and 2010 respectively.
Domestic demand, the main growth driver of the Romanian economyin the years of boom up to 2008 and the indicator with the steepestdecline when recession set in, will see only marginal growth nextyear, amid a slight salary increase.
Domestic demand is expected to once again play an important partin economic growth as of 2011.
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