The Ministry of Economy and Finance forecasts economic growth of 7% in 2007 based on the January-April results.
Economy and Finance Minister Varujan Vosganian said economic growth and budget figures for the first four months show that Romania could end this year with a budget deficit lower than 3%. In terms of the new GDP estimate for 2007, talks are under way between representatives at the National Institute of Statistics and the National Commission of Prognosis, and the forecast relies on the growth registered in industrial output and the construction sector.
The minister repeated the budget execution data for January-April, saying that there had been a surplus of 0.3% at consolidated level and the state budget deficit was down 0.8%. The January-April state budget revenues totaled 14 billion lei, and spending, 16.7 billion lei. He affirmed that the 2008 budget could stand reductions, with social security contributions likely to be lowered by 6% next year. He did not specify whether the cut would apply to employees or employers. (legalromania.com)