IMF: Economic drop in Romania will reach 8-8.5 % in 2009

IMF: Economic drop in Romania will reach 8-8.5 % in 2009

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The estimated figure is double of the previous estimation, from march, 4.1 %, which means Romania is in “serious recession”, according to Franks.

As regards the rate of inflation, IMF foresees it will reach 4.3 % in 2009, down from the 4.5 percentage at the beginning of the agreement.

Jeffrey Franks warned IMF accepted the rise of the budgetary deficit by 7.3 % in 2009, from 4.6 %, as it was stipulated in the loan agreement signed in March by the Romanian authorities and the financial institution. IMF official added the deficit risks to be higher, towards 8 % of the GDP without the necessary fiscal measures.

IMF anticipates Romania will register a light economic rise in 2010, in the context of a gradual recovery in the following three quarters.