Romanian PM Is Confident The Economy Will Revive Soon

"I see the full half of the glass, as an economic contraction in the first quarter was expected. It is very good that starting March and April, we see signs of economic revival, which give me hope that we are doing the right thing, and within a not very long period of time we will overcome the economic crisis," Boc said.

Boc said the foreign investments have largely increased over the last period, despite the economic crisis. Also, the budget revenues started to increase and the unemployment began to fall, the premier added.

Romania’s gross domestic product fell by a larger-than-expected 6.4% in the first quarter compared with the same period a year ago. The first quarter GDP also shrank by a seasonally-adjusted 2.6% compared with the fourth quarter of 2008. Romania’s economy is in a technical recession after two consecutive quarters of quarterly declines.

According to Boc, the ways to overcome the crisis are massive investments in infrastructure, keeping jobs and setting up new ones.

"We have signals of economic revival, and the Government may push the investments pedal down to save Romanians’ jobs," Boc said.

Foreign direct investments, or FDI, in Romania were down 13.9% in the first quarter, at EUR1.46 billion, from EUR1.69 billion in the same period a year earlier, the central bank said Friday.

In the first quarter, Romania’s consolidated budget deficit was at 7.925 billion lei (EUR1=RON4.1923), or 1.5% of the GDP, while budget revenues were down 5.5% on the year.

For the whole of 2009, Romanian GDP is expected to shrink 4%.