IMF "insists" on 4% contraction of Romanian economy

International Monetary Fund “insists” on a 4% contraction of Romanian economy, at a 2-6% budget deficit assumption, most likely to hover around 3.5% and 4% of GDP, said the chairman of BNS, Dumitru Costin at the end of the meeting with IMF officials.

“IMF ‘insists’ on -4% economic growth, as the economy still has much to suffer from crisis. The current situation is unprecedented and the solutions will not be the classical ones”, said Dumitru Costin (photo).

In their -4% economic growth assumption, the representative of the international institution considered the international gloomy context, which led to sharp fall in exports, and poor infrastructure, but also the resilience of the Romanian banking system, unlike in other crisis-hit countries.

BNS president said “there will be no traditional measures like we were used to so far, as the context is different. They will be more flexible”.

“When we asked about the monetary policy, IMF representatives said they would leave more room for maneuver to the National Bank of Romania and to the government. Policies will not be as tight as before”, Dumitru Costin added.

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