Romanian GDP Seen Growing 1% In H2 – IMF

Franks, speaking in an interview to be broadcast on Romanian television channel Pro TV this Sunday, likened the country’s economy to a patient recovering from high fever.

„The fever is gone, but the patient is still weak,” Franks said.

He said the economy will start recovering as of the second half of the year, but a growth level similar to the ones prior to the recession will not occur too soon.

Romanian economy contracted by a sharp 7.1% in 2009, after a growth of 7.1% a year before.

Franks welcomed the government’s measures to lower the budget deficit and said that short of those measures, the gap would have widened to at least 10% of the GDP in 2009 instead of 7.2% of GDP.

Romania aims to reduce the deficit to 5.9% of GDP in 2010 and to below 3% of GDP by 2012.

Franks said 2010 remains a difficult year for the country, as the unemployment rate is expected to peak sometime during the year before taking the downward path.

However, the economy has seen a few „preliminary” successes and several sectors have already reported growth, he added.

The IMF, which lent Romania EUR13 billion last year to cushion the effects of recession, forecasts a modest growth of 1.3% in 2010.

Early April, officials of Romania’s prognosis commission (CNP) said the economy could still be months ahead a positive revival, as the first signs regarding the evolution in the first quarter don’t point to growth.