“The economy has returned to growth… and we expect to have a positive development in 2012 as well. However, the growth is insufficient to improve the living standards of Romanians,” said Jeffrey Franks, head of the IMF’s mission to Bucharest.
“(A growth of) 1.5% or 2.5% is better than no growth, but it’s not enough,” he added.
Romanian real-term GDP grew by 4.4% in the third quarter of 2011 compared with the same period of 2010, after a 1.4% increase a quarter earlier.
The authorities estimate an economic growth of around 2% in 2011, versus a contraction of 1.3% in the previous year, broadly fueled by a better-than-expected farming output.
Franks said Romania faces many difficult challenges ahead, including better policies that would lead to economic growth and higher salaries, a better educational system and additional jobs.
The IMF official said Romania is like a mended ship which has to get ready for a new storm. The troubled eurozone is bound to affect other countries as well and Romania must avoid economic instability, Franks added.
Joint teams of the IMF and the EU will be in Romania until February 6 for the fourth review of a EUR5 billion precautionary agreement signed last spring.