IMF Sees Romanian GDP Falling At Fastest Pace In Emerging Europe

Romania’s economy will shrink at the fastest pace among emerging states in Europe this year, while its estimated growth of 1.5% for 2011 will be the smallest in the region, the International Monetary Fund said in its latest global outlook report.

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The IMF forecasts Romania's gross domestic product will decrease 1.9% in 2010, from a steep contraction of 7.1% a year earlier.

In 2011, the economy is expected to grow a meager 1.5%, below the region's 3.1% average advance.

Romania's annual inflation is estimated at 5.9% in 2010, higher from 4.7% in December last year, largely due to a 5 percentage point increase in the value added tax introduced in July.

For 2011, the IMF forecasts an annual rate of 5.2%.

By contrast, Romanian unemployment rate is expected to remain the lowest in the region. The IMF estimated the jobless rate would be 7.2% in 2010 and 7.1% in 2011.

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