Romania’s Economy Might Fall 0.5%-1% In 2010 – Analyst

„Romania will not be able to report growth in the first quarter of the year and I expect negative yearend results, with a decrease between 0.5% and 1%, since a series of measures with a macroeconomic impact have yet to be applied,” Craciun said.

He added it’s hard to think that consumption would grow as long as unemployment widens and lending revival is delayed.

„Those who took out loans will not borrow again. In fact, people are trying to repay their loans as soon as possible, to relieve themselves of the payments. Lending might be resumed in the third quarter of this year,” Craciun said.

The International Monetary Fund recently cut Romania’s economic growth forecast this year to 0.8% from 1.3%.

Romania’s economy fell 7.1% in 2009, after similar growth the year before.