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December 02, 2005

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Mihai

Yes, the downturn in growth is not so much due to lack of reform but probably because of reform. The Justice and Truth Alliance's reforms have been quite austere this year, and have probably resulted in harder conditions for producers (and many strikes as well!). Add to this the floods and the strong leu, and it's perfectly normal for growth to slow down. In fact, I think Romania's done quite well and is a very resilient economy in this respect - if this had happened in 1997-1998, we would've seen economic declines of 4.5%!

The reforms, however, needed to be done, and this will probably result in higher growth in the future. In fact, I wouldn't be surprised if growth in Romania next year hovers at around 8%, provided that the agricultural yield is good.

Mihai

Yes, the downturn in growth is not so much due to lack of reform but probably because of reform. The Justice and Truth Alliance's reforms have been quite austere this year, and have probably resulted in harder conditions for producers (and many strikes as well!). Add to this the floods and the strong leu, and it's perfectly normal for growth to slow down. In fact, I think Romania's done quite well and is a very resilient economy in this respect - if this had happened in 1997-1998, we would've seen economic declines of 4.5%!

The reforms, however, needed to be done, and this will probably result in higher growth in the future. In fact, I wouldn't be surprised if growth in Romania next year hovers at around 8%, provided that the agricultural yield is good.

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