Fitch forecast: Romania's economy will shrink by 7.5% this year, but increase by 2% in 2010

Romania’s economy will contract by 7.5% in 2009, according to Fitch Ratings. This is a more optimist version of the IMF estimate, which sees Romania’s economy shrinking by 8-8.5%. The financial evaluation agency sees Romania’s budget deficit amounting to 7% of the GDP in 2009.

The International Monetary Fund, together with the Romanian authorities, revised in August the budget deficit target for 2009 from 4.6% to 7.3% of the GDP.

Fitch ratings forecasts that Romania’s economy will increase in 2010 by 2% and the budget deficit will reduce to 4.5% of the GDP.

For 2011, the rating agency estimates that Romania’s economy will increase by 4%.