Monday, June 5, 2017

World Bank positive on Romania's growth prospects

Xinhuanet:

The World Bank on Monday raised its projections for Romania's economic growth from 3.7 to 4.4 percent in 2017.

In its report regarding Global Economic Prospects, the bank upgraded its formal forecast on January for the eastern European country for the current year. Moreover, it revised upwards by 0.3 percentage point the estimations for 2018 and 2019, when Romania's GDP is to increase by 3.7 percent and 3.5 percent respectively.

Romania's gross domestic product (GDP) expanded at an annual rate of 5.7 percent in the first quarter of 2017 compared with the same period of the previous year, ranking the first in the European Union (EU) countries.

I continue to hold Fondul Proprietatea as my Romanian investment vehicle. The stock has traded higher recently, yet is still undervalued. You can buy $1.00 of asset for $.78 of assets. The fund manager continues to buy back stock to lower the shares outstanding on a weekly basis. You also get a around a 5% yield while you wait for the mispricing to cure.

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