IMF Sees Romanian GDP Falling At Fastest Pace In Emerging Europe

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.