FinMin Vladescu: Romania’s economy to drop by over one pct in 2010
Romania will register an economic decrease of at least one percent in 2010, according to the Public Finance Minister, Sebastian Vladescu. ‘The economy will drop by over one percent. We are working on a new forecast and we would like to also see the figures of the first half of 2010. The economic growth and the exchange rate targets will be modified, but for the time being we are working on them,’ said Vladescu.
He also said that the VAT hike covers the same necessary amount as the 15-percent slash in pensions, so that the budget deficit should close at 6.8 percent of GDP, but because of the VAT hike, an alternative measure the authorities did not want, things will be worse. There will be ‘higher inflation, a different exchange rate and sharper recession,’ underlined Vladescu.