Romania's economy could drop 5% in Q2 and register negative growth next year too

Romania's economy melted down 3-4 percent in the first three months this year over the similar period last year and will continue to shrink by 5 percent in the second quarter and throughout the next year, people from the government told NewsIn.

The economy could see a slight recovery starting with the third quarter this year and could lower 2 percent in the last quarter, they said.

Moreover, the Cabinet estimates that the economy in 2010 will contract by 0.1 -0.2 percent.

Earlier today the International Monetary Fund (IMF) gauged in a report that Romania's economy will reduce 4.1 percent this year and idle the next one.

The executive office is now waiting for the official letter from the IMF at the end of this week and then for the general OK of the fund's board and the European Commission's one, before receiving the 5 million euro first installment of the 20 billion euro external loan contracted to revamp the economy.

NewsIn