Bulgaria’s economy to shrink by 0.1%, Romania’s by 1.2% in 2010

According to the Economist Intelligence Unit (EIU), Bulgaria’s economy will decline by 0.1% in 2010 before it returns to positive growth in 2011. The EIU report says that Bulgaria’s capacity to respond to the economic crisis is limited by the currency peg of the lev to the euro and the need to maintain a restrictive fiscal policy.

Romania’s economy is also forecast to return to growth in 2011, after a 1.2% contraction in 2010 amid harsh austerity measures.

Source: Economist Intelligence Unit