The International Monetary Fund is estimating the demand will diminish in Romanian economy, which will help the country have a smooth landing after the great economy growth in the first term of 2008. Still the institution is warning that a decline of the construction industry may lead to a rough landing, Reuters reports.
According to Jose Fernandez-Ansola, a regional representative of the IMF, there is expected a slowing down of demand on the local market and economy is estimated to have a smooth landing. Still there are two factors to be seriously considered: the rate of trust in the business world, right now having a positive evolution, and the activity in the field of constructions, actually the engine of economy. In case of decline, he warns, there may follow a rough landing.
A smooth landing scanrio implies reliable economy, fast enough to avoid fears about recession and slow enough to keep the inflation rate at the same level. On the other hand, a rough landing involves recession, effecting from the government's attempt to cut on inflation. (...) (G.M.)