Friday, November 13, 2009

Romania could grow 0.5-1.5 pct in 2010-cbanker Popa

BUCHAREST, Nov 12 (Reuters) - Romania's economy could grow by 0.5 to 1.5 percent in 2010 after recording one of the fastest declines in the European Union this year, deputy central bank governor Cristian Popa said on Thursday.

His forecast was a higher range than that of the International Monetary Fund, which sees growth of 0.5 percent in 2010 after a contraction of up to 8 percent this year.

'As far as growth for 2010, it could be anywhere between 0.5 and 1.5 percent,' he told reporters on the sidelines of an economic seminar in Bucharest.

Analysts warn a political crisis caused by a government collapse last month and expected to drag on until after the outcome of a second round of presidential elections on Dec. 6 could slam the brakes on a nascent economic recovery.

Political woes have frozen vital funds from the IMF and other international lenders, forcing the finance ministry to find ways to cut spending to keep its ballooning budget deficit from spiralling wider.

Romania's gross domestic product recorded an 8.7 percent contraction in the second quarter versus a year earlier. Third quarter data are due on Friday at 0800 GMT.

No comments: