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IMF: Romania Economy To Grow 3.6% In 2011 Vs Decline In 2010

The International Monetary Fund forecasts Romania’s economy will grow 3.6% in 2011, following a possible minor contraction envisaged for this year, IMF mission head Jeffrey Franks said in Bucharest Monday.
IMF: Romania Economy To Grow 3.6% In 2011 Vs Decline In 2010
10 mai 2010, 10:45, English

Speaking in a press conference, Franks said the economic evolution in the first part of the year was below expectations, due both to bad weather and weak performance of Romania’s commercial partners.

Last month, the IMF revised its forecast on Romania’s economic growth for 2010, from 1.3% to 0.8%.

But following discussions with the Romanian authorities in the last two weeks, the IMF now expects Romania’s GDP growth to be around zero or even negative.

Franks said the Romanian authorities have chosen to implement an ambitious yet harsh program to drastically cut spending in the public sector and limit the budget deficit to 6.8% of the gross domestic product in 2010.

Without these measures, the budget gap would have widened to 9.1% of GDP this year, Franks said.

Initially, Romania and the IMF had agreed to a budget deficit of 5.9% of GDP this year, from 7.4% of GDP in 2009.

Joint teams from the IMF, the European Commission and the World Bank arrived in Bucharest April 27 for the fourth review of Romania’s performance under a EUR20 billion bailout loan signed last spring.