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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Romania appoints new economy, defence ministers

Romania's economy minister Mihai Fifor has been moved to head the defence ministry, after former minister Adrian Tutuianu resigned last week. Fifor was replaced by Gheorghe Simon, who took over the ... more

IIB to issue bonds to support activities in Romania

The Moscow-based International Investment Bank (IIB) will issue bonds to expand its existing loan portfolio and finance activities in Romania, the bank announced on September 4. The IIB has ... more

Romania’s Nuclearelectrica to resume talks on new nuclear reactors with Chinese investors

Nuclearelectrica, the operator of Romania's sole nuclear power plant, is reportedly poised to resume negotiations with China General Nuclear Power (CGN) on the construction of two new reactors.  ... more

Most Read

  1. STOLYPIN: Russia balances wargames with mindgames in Zapad exercises
    1 day ago
  2. Volkswagen doubles exports of Russia-made cars
    6 days ago
  3. ISTANBUL BLOG: Commerzbank ignites quarrel claiming Turkey’s official growth figures are “more than questionable”
    9 days ago
  4. Romania’s media sector in turmoil
    9 days ago
  5. Mongolian government crisis prompts IMF to delay first payments under $5.5bn bailout
    7 days ago
  1. Hungary threatens to block Romania’s OECD accession
    15 days ago
  2. ISTANBUL BLOG: Commerzbank ignites quarrel claiming Turkey’s official growth figures are “more than questionable”
    9 days ago
  3. Economists tangle over risk of a Greek-style collapse in Turkey
    19 days ago
  4. Wild capitalism threatens the untamed rivers of Southeast Europe
    1 month ago
  5. Russia’s government moves from war budget to election budget
    27 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss