Romania May Enter Recession If Weather Poor And Oil Price High

Romania's economy could go into recession for the first time in nine years if poor weather would damage the agricultural output and oil and gas prices would go up on the international markets, says one of the scenarios in the 2008/2011 Convergence Program to be forwarded to the European Commission.

Extreme weather conditions could disrupt the local agricultural market and the self-sustained households in the rural areas, prompting more imports of food, with an overall negative impact on the economy, says the document.

If those effects would be coupled with a hike in the oil and gas prices, then there is a good possibility for the Romanian economy to enter into recession, the document further states.