This is the second reduction of the official prognosis in 2012. In February, the government and the International Monetary Fund cut their growth forecast from 1.8%-2%, saying they expect exports to slow down this year due to weak economic performance in the European Union.
A delegation of the IMF, the EU and the World Bank arrived in Bucharest on August 31 for the sixth review of a EUR5 billion precautionary loan agreement signed last year.
People familiar with the talks between Romanian authorities and the international creditors told Mediafax Wednesday that IMF would maintain its growth forecast above 1% in 2012, in spite of a weak harvest predicted for this year and the difficult climate elsewhere in Europe.
The new estimates indicate a nominal gross domestic product of 607.3 billion lei (EUR133.9 billion) for 2012, slightly down from RON607.5 billion previously envisaged. Additionally, the GDP deflator is seen rising to 4%, from 3.3% previously, the people privy to the talks said.
Romanian economy shrank for a second straight quarter in January through March, meaning the country is technically into recession.
In 2011, the country’s GDP increased by 2.5%, helped by a bumper harvest and improved performance in industry.