IMF Sees Positive Q4 GDP Growth In Romania

The International Monetary Fund on Monday estimated Romania economy will return to positive territory in the fourth quarter, followed by a more consistent growth of 1.5% in 2011.

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For the whole of 2010, however, Romanian gross domestic product is expected to contract by 2%, IMF mission head Jeffrey Franks said.

He estimated Romanian inflation will be slightly above 8% in December 2010, following the introduction in July of a 5 percentage points increase in the sales tax to 24%.

For 2011, the inflation rate should ease toward 3%, in line with central bank's estimations.

Romania was hit hard by the global downturn in 2009, when it posted an economic decline of 7.1%. Analysts forecast the country would not exit the recession until 2012.

An IMF mission visited Romania during October 20-November 1 to review the country's progress under a EUR13 billion loan agreement signed last year.

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