IMF: Romania’s 2013-2016 economic growth to remain strong at 3.5 to 4%

The International Monetary Fund (IMF) forecasts that Romania’s medium-term economic growth between 2013 and 2016 will remain strong at 3.5 to 4 percent. For 2012, “growth is likely to be less robust than previously forecast due to the effects of the worsening external environment on exports and on domestic demand (via the largely foreign-owned banking system). Staff now projects 2012 growth to be 1.5 percent, driven by a gradual rise in domestic private demand and increased EU funds absorption,” shows the IMF report. A joint team of International Monetary Fund (IMF), European Commission (EC) and World Bank representatives will arrive in Bucharest on April 24, for the fifth review of the country’s stand-by agreement, according to Bogdan Dragoi, Minister of Finance. The IMF agreed to disburse an additional EUR 505 million for the country, after the fourth review, bringing the total resources that are currently available to the country to about EUR 2 billion. The stand-by agreement totals EUR 3.6 billion and was approved a year ago. Irina Popescu, irina.popescu@romania-insider.com