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Moody’s: Per capita income could be at European level in Romania after 40-45 years

According to Moody's, the per capita income in Romania and Bulgaria could reach European levels after 40-45 years and in other Central and East European states in 30-40 years instead of 15-20 years as anticipated before the economic crisis, Reuters informs.

One of the crisis results is that the convergence process of states in the area as concerns the per capita income will be slower and will last longer than anticipated, according to an analyst of the financial evaluation agency. Some analysts estimated , before the crisis, that the convergence will last 15-20 years. Now it will be 30-40 years in some states and more in others, said Kenneth Orchard, a Moody's analyst in charge of Poland, the Baltic area and the Balkans. He pointed out that in Poland the convergence may last 30 years while in Bulgaria and Romania 40 to 45 years.

On the other hand, Moody's analysts present at a summit about investments in Central Europe, organized by Reuters consider that that there are few chances of rating improvement for states in the area in the next years considering the amplification of budget deficits and the worsening of development prospects.However, the EU and IMF support has contributed to the reduction of economic decline as a result of the economic crisis, said Dietmar Hornung, Moody's vice-president.Both Hornung and Orchard consider that economies and markets in the area still fragile and governments should solve problems concerning the budgets before the agency could positively review perspectives of sovereign ratings.

Moody's said in a report about Hungary published on Tuesday that the perspective of this state's rating may be reviewed to stable, if the budget balance continues.Hornung, who is in charge of evaluating economies of the Czech Republic, Hungary and Slovakia said there will not be imminent modifications of these countries' rating perspectives. Orchard warned at the same time that the coming elections like the presidential ones in Poland in 2010 will exert major pressures on budget expenses but will not have an impact on ratings.Moddy's reviewed the ratings in the area selectively in the conditions in which the impact of the financial crisis on economies was different.

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Tags: years moodys crisis romania european income could capita