The Romanian economy should grow by 3.5 percent in 2012, says the IMF

The International Monetary Fund (IMF) forecast in its latest World Economic Outlook published today, a slowdown in the economic growth of Romania for next year. Earlier this year, the IMF projected in a previous report that Romania should see an economic growth of 4.4 percent of GDP. For this year, Romania should register an increase of 1.5 percent of GDP.

The report further projects the annual inflation rate to level at 6.4 percent this year, further decreasing to 4.3 percent in 2012. The current account balance is forecasted to reach a negative 4.5 percent this year, further expanding to a negative 4.6 percent next year.

On the bright side, the unemployment rate is expected to decrease to 4.8 percent in 2012.     

Earlier this week, Romanian president Traian Basescu advised the Government to plan the budget for 2012, considering an economic growth of 2-2.5 percent of GDP,  based on major investment projects. Basescu pinpointed mining activities as a possible source of additional revenue to the national coffers. Deposits of gold, silver and cooper urgently need to be exploited by the Romanian state,  as international prices for these resources have dramatically increased in the recent period. 

Ovidiu Posirca

Read more about

iBanFirst Forecast 2024: Romanian economy will grow by 2.7%, inflation will hover around 5%

read more