IMF Sees Romanian GDP Growth At -4.1% In ‘09, 0% In ‘10

The figures are very close to those taken into account in the recent budget revision, approved by the Romanian government.

 

The government approved April 11 a budget revision to include the measures agreed in March with the IMF, and the European Union. The new forecast is based on a -4% GDP growth, a 5.8% inflation and an external gap of 7.5% of the GDP.

 

March 25, Romania agreed with the IMF, the E.U. and other international institutions a EUR19.95 billion financial package, supported by a EUR12.95 IMF loan under a two-year stand-by arrangement.

 

For 2010, IMF expects improvements in all Romania’s major indicators. Thus, IMF sees a 0% GDP growth, a 6.5% of the GDP current account deficit and a 3.9% inflation rate in 2010.

 

At the end of 2008, Romania’s annual inflation was at 6.3%, while the current account deficit was at 12.5% of the GDP.

 

Romanian GDP rose 7.1% in 2008, but its growth slowed down abruptly in the last quarter, at 2.9%.

 

The IMF Board will discuss early-May the agreement with Romania, and the first tranche of the loan, worth of EUR5 billion, will be released upon Board approval.