| The political instability at the end of 2009 has resolved, | | | | as president improves the outlook. It has also led to |
| with a marginal win by President Traian Basescu | | | | expectations of much-needed structural reforms, |
| declared in December. During the electoral turbulence, | | | | including the implementation of IMF-prescribed austerity |
| which involved fraud allegations, policymaking was | | | | measures. |
| derailed and Romania lost out on a EUR1.5bn | | | | Total property investment revenue in H209 remained |
| disbursement from the International Monetary Fund | | | | very low, and fell 25% y-o-y, according to CB Richard |
| (IMF). | | | | Ellis (CBRE). However, this was an improvement on |
| Although the economy is still in deep recession, it has | | | | H109. |
| passed the worst, with GDP data for Q309 showing a | | | | In the office market, vacancy rates have continued to |
| reduction in the pace of decline. The unemployment | | | | increase, and are expected to grow over H109. |
| rate remains high, and is forecast to reach a peak of | | | | Take-up was very poor down in 2009 but began |
| 8.5% in 2010. High unemployment weakens consumer | | | | increasing in Q409. This is expected to keep increasing |
| spending, lowers consumer confidence and will place a | | | | throughout this year. |
| check on broader economic growth during the | | | | The retail sector is still flat. Some national retail chains |
| expected recovery. The recovery is forecast to occur | | | | have faced significant financial difficulties. Store |
| in 2010 but it will be to be weak and fragile. | | | | openings have decreased, and there are high vacancy |
| Corruption remains a major and longstanding problem. | | | | rates for shopping centres and, especially, for onstreet |
| Romania ranked 71 out of 180 surveyed countries in | | | | shops. In the industrial sector, there has been a |
| the 2009 Transparency International Corruption | | | | slowdown, but this appears to have bottomed in late- |
| Perceptions Index, placing it equal last among the 30 | | | | 2009. The industrial sector is still expected to be flat in |
| EU countries surveyed. However, Basescu's new term | | | | 2010. |