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Fin Min: Romania’s GDP May Contract 8% In ‘09

Romania's finance minister Gheorghe Pogea Thursday said the gross domestic product may fall 8% this year and the forecast of a 4.1% contraction set in the agreement with the International Monetary Fund would be revised.
Fin Min: Romania’s GDP May Contract 8% In ‘09
30 iul. 2009, 13:26, English

Asked by reporters if an 8% GDP contraction is plausible, Pogea answered that “a contraction in this range is possible.”

Both the economic contraction and the budget deficit target will be revised, Pogea also said.

So far, previous projections of the finance minister indicated a narrower GDP fall, of around 6%.

The IMF currently sees Romania’s GDP contraction at 4.1% in 2009. Romania negotiated with the International Monetary Fund a budget deficit target of 4.6% of the GDP.

Romania’s GDP fell 6.2% on the year in the first quarter, but several analysts estimated a sharper contraction in the next quarters.

Romania and the IMF agreed on a EUR12.95 billion two-year stand-by loan, as part of a EUR19.95 billion financial support package that also includes funds from the European Commission, and other international institutions.