Bulgaria, Albania Economies 'Doing Better' than Romania

Jeffrey Franks (C) the head of the International Monetary Fund (IMF) mission to Romania, is seen through a glass as he addresses a news conference in Bucharest, Romania. Photo by EPA/BGNES

The Bulgarian and Albanian economies are performing better than Romania's, Romanian newspaper Cotidianul commented a day after an IMF mission wrapped up its visit to the country to review its progress under a EUR 13 B loan agreement signed last year.

The article cites IMF mission head Jeffrey Franks, who said that Romania's gross domestic product is expected to contract by 2% for the whole of 2010.

The International Monetary Fund Monday estimated the Romanian economy will return to quarterly growth in the fourth quarter of 2010, followed by more consistent growth of 1.5% in 2011.

"The figures look promising especially bearing in mind how hard Romania was hit by the global downturn over the last two years. Still Romania's economic recovery is lagging behind all other European countries and even neighbors such as Bulgaria are faring better," Cotidianul writes.

The International Monetary Fund expects Bulgaria's economy to grow from 0% to 0.4% in 2010 as the country is going through its first recession in twelve years.

The Washington-based lender projects this year's inflation to be moderate, while the current account deficit is expected to fall below 3% of gross domestic product.

According to IMF experts Bulgaria's economy will gain momentum next year and may expand by 2%-2.5% on an annual basis.

Bulgaria aims to have a budget deficit of 2.5% of gross domestic product and a growth of 3.6% in 2011, according to the budget draft. The economy contracted by 5% in 2009.

'Bulgaria is benefiting from stronger exports and the economy is poised to stage a gradual recovery,' the IMF said in a statement.

Bulgaria is currently going through its first recession in 12 years after a three-year lending boom stalled and foreign investments dried up.

Earlier this year, the government adopted a package of austerity measures, freezing public pays and pensions in a bid to reduce the bloating deficit.

It revised up to 1% its economic growth forecast for this year, pinning its hopes on increasing exports.

Romania was hit hard by the global downturn in 2009, when it posted an economic decline of 7.1%. Analysts have forecast the country won't exit the recession until 2012.

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