In 2007 and 2008 Romania's gross domestic product is going to grow with 6%. Albert Jaeger, head of the IMF mission in Romania and Bulgaria, estimated it yesterday. It is to be reminded that in the first term this year the GDP had a growth of only 5,8% and that Romania underwent severe drought last summer.
According to the initial draft on the 2008 budget, as presented by the Romanian economy minister Varujan Vosganian, the budget deficit is to reach 2,7% of the GDP. The current account deficit, the fiscal and salary policies, a possibility such of overheating economy and the international financial crisis are the main fears of Romanian economy. Jaeger also mentioned that the instability prevailing in Romanian politics was an obstacle against the making of the medium term economic strategies the state needed. He added the need was somehow illustrated by the funds Romania could get from the EU. The EU has got 7-year financial prospects, he claimed, and Romania needs planning for the exploitation of opportunities.
Another issue the IMF official raised was the pension system reform. He estimated Romania would face difficulties with it after 2008 and it needed a strategy for the time to come after 2009. (...) (F.B.)