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

The International Monetary Fund official forecasts on Romania see the gross domestic product contracting by 4.1% in 2009, the current account deficit narrowing at 7.5% of the GDP and the inflation at 5.9% at the end of the year, according to the fund's latest World Economic Outlook.

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.

Mediafax