However, the recession is expected to continue in the Baltic States (Lithuania, Latvia and Estonia), where the GDP may drop 17.4% this year, and 3.7% in 2010.

Poland is the only country in the region for which IMF predicts 1% real growth in GDP this year, and 2.2% growth in 2010. As for Turkey, the International Monetary Fund expects 3.7% economic growth next year after 6.5% decline in 2009.

At the first review under stand-by arrangement with Romania, IMF agreed on a GDP contraction of 8-8.5% this year, following to return to positive growth in 2010.

The forecasts have been revised from 4.1% GDP contraction issued in spring this year.

The National Prognosis Commission predicted a GDP contraction of 7.7% in its autumn outlook made public late last week, based on an average performance of agriculture sector.

IMF said inflation rates could hover near 5.5% this year, following to drop to 3.6% in 2010. Last year’s inflation rate stood at 7.8%. NBR expects a 4.3% inflation rate for the end of the year.