Romanian economy recovers slower than regional peers – IMF official

By bne IntelliNews May 30, 2014

Romania’s economy might return to the pre-crisis GDP levels but it has recovered slower than its regional peers, the IMF resident representative for Romania and Bulgaria, Guillermo Tolosa, told a press conference. Structural reforms and EU funds absorption are needed for maintaining the good performance seen last year.

Underdeveloped infrastructure, particularly railway and power networks, drag the country’s economy down, Tolosa explained. Furthermore, the agriculture accounts for a relatively large share in the country’s economy [some 6%] and remains an important growth driver – but this also results in a certain volatility of the GDP, he added.

The exports, the energy sector and the EU funds are the opportunities that Romania has to capitalise on, Tolosa commented.

Exports account for only 40% of GDP – meaning that there is a robust potential for growth toward levels of 100% seen in more developed countries like the Czech Republic. The exports to Germany are only 6.4% in the case of Romania – compared to 25.5% in the Czech Republic and 21% in Hungary, he furthered.

Romania enjoys a broad range of energy resources and the energy imports account for only 10% of total imports – compared to 30-35% in other countries, Tolosa said commenting on the growth potential generated by the energy sector.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

Bucharest urges local government to borrow from banks despite warnings from IMF and EC

Romania’s local administration can co-finance the EU-funded projects from bank loans at interest rates lower than the financing cost of the Treasury, Romania’s central government reportedly ... more

IPO of Romanian telco RCS&RDS reportedly planned for May

A group of shareholders of Romanian diversified telecoms group RCS&RDS want to sell 20%-30% of the group’s shares in an IPO, Ziarul Financiar daily reported. The IPO is expected to take place ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss