Romania EconMin sees 2010 economy growing 1.5 pct

BUCHAREST, May 24 (BestGrowthStock) – Romania’s economy may record
growth of over 1.5 percent this year after contracting more
than 7 percent in 2009, Economy Minister Adriean Videanu said
on Monday.

His comments come after the International Monetary Fund
said earlier in May it sees flat or negative growth for the
European Union state, revising previous estimates downward as
economic indicators have so far underperformed expectations.

“I am optimistic,” Videanu told local television station
Realitatea TV. “In my opinion, (growth) will go above 1.5
percent this year.”

An IMF mission to review Romania’s progress in meeting the
conditions attached to a 20 billion euro aid package agreed to
allow it a wider deficit target of 6.8 percent of gross
domestic product this year against a previous 5.9 percent.

However, it said the IMF will not disburse further aid
until the centrist coalition government takes strong measures
to cut public spending and boost tax receipts. [ID:nLDE6490I2]

The cabinet has said it will enforce drastic cuts in
pensions and wages in its sprawling state sector as of June, in
a bid to avoid raising taxes but angering powerful trade
unions.

Thousands of Romanians protested against the cuts in
Bucharest last week, and unions are considering a general
strike on May 31, casting doubt on Romania’s ability to meet
its pledges. [ID:nLDE64I0S9]

Stock Market
(Reporting by Luiza Ilie; Editing by Chizu Nomiyama)

Romania EconMin sees 2010 economy growing 1.5 pct