IMF re-revises its economic forecast for Romania: 0.5% contraction in 2010

IMF’s estimate on the evolution of Romania’s economy in 2010 has been downgraded for the second time in less than a month from a 0.8% plus (of the GDP) to -0.5%, an interview with the IMF chief of mission to Romania Jeffrey Franks indicates. The interview was published in the institution’s website. He estimates that the economy will recover to positive figures in 2011.

“The recovery is under way in Europe, but it’s still much weaker than in other parts of the world,” Marek Belka, Director of the IMF’s European Department, said. The return to positive economic growth is delayed and weaker than initially anticipated. This is how they motivate the downgrading of the economic forecast for Romania from +0.8% to -0.5% of the GDP in 2010. According to Jeffrey Franks, Romania will lose the negative figures in 2011.