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IMF intends to revise upwards estimates on Romania's economy

The International Monetary Fund (IMF) intends to revise upwards the estimate on this year's development pace of Romania, Business Standard daily writes.

This decision is owed to the solid results regarding GDP in Q1, when Romania's economy grew 8.2%. The new prognosis will anticipate new significant growth in 2008. However, IMF estimates the economic growth will slow down in 2009. Romania's GDP rose in Q1 2008 by 8.2%, much above the analysts' expectations. This growth pace sparked concerns related to a possible overheating, taking into account also the fact Romania is being faced with an excessive current account deficit and accelerating inflation. The intention to revise upwards the data on the trend of the economy comes after the pessimistic forecasts published in April, when IMF estimated Romania's economy would grow this year by 5.4%, down versus the 6% growth in 2007. IMF estimated GDP would rise in 2009 by 4,7%. The possible slowdown in 2009 may be partially determined by the indirect effects of the turbulence on the international markets. When presenting the April's data, IMF enumerated a series of problems Romania is facing, which might pull the economy down, with the current account deficit, inflation and international financial turbulence representing the most important dangers for the country's economy. The structural reforms and the fiscal policy ate other two chapters where Romania still has big problems, IMF says. IMF says the upward revision does not mean the problems mentioned above have been eliminated or reduced. Inflation remains a significant obstacle, and BNR will have to continue to combat the pressures put by prices. Sursa: http://www.rompress.ro

Tags: economy revise romanias upwards bnr