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Romania To Post Slight GDP Growth In 1Q – IMF

The International Monetary Fund expects the Romanian economy to return to growth in the first quarter, after a small contraction in the fourth quarter of 2009, Jeffrey Franks, head of the Fund's mission to Bucharest, said Wednesday.
Romania To Post Slight GDP Growth In 1Q - IMF
27 ian. 2010, 11:08, English

According to the latest figures, Romania’s economy is expected to have shrunk by 7% in 2009, Franks told a news conference. He added the GDP contraction in the fourth quarter of 2009 was smaller compared to the previous quarter.

The IMF kept its forecast on the economic growth unchanged at 1.3% in 2010, but said it expected the recovery to step up in 2011.

Nonetheless, there is a risk the global economy recovery may be sluggish, which will obviously reflect on Romania’s economic evolution as well, Franks said.

Franks said the Romanian budget for 2010 is in line with IMF’s expectations and requirements and the budget deficit target of 5.9% of the gross domestic product was a key measure to finalize the review mission and unblock further disbursements.

Romania and the IMF agreed last spring on a EUR13 billion stand-by loan, as part of a EUR20 billion package that also includes funds from the European Commission, the World Bank and other international lenders.

A mission from the IMF, alongside representatives of the EU and the World Bank, arrived last week in Bucharest to review Romania’s progress under the arrangement.