Vlădescu telling foreigners Romania is already out of recession
Romania is already out of recession and on the right track,
Finance Minister Sebastian Vlădescu told foreign investors during a
live statement on international business TV channel Bloomberg
yesterday morning.
Asked when he thought Romania would "comfortably exit the recession
and start to grow", Vlădescu answered with a slight hesitation:
"Well, we already did. We had very, very slight growth in the
second quarter. For the first time after six quarters of decline we
had 0.3% growth in the seventh, so that I am optimistic we are on
the right track."
Still, compared with the second quarter of 2009, the economy went
down 0.6% of GDP. A 0.1% quarter on quarter increase had been
previously registered in the third quarter of last year. Vlădescu
ignored the 1.9% GDP decline forecast for 2010 considered at the
recent budgetary adjustment.
This the first time since the beginning of his current term in
office that the Finance Minister has been so optimistic, after
having constantly voiced his reservations about the chances of an
economy recovery for this year and even for 2011 from this spring
through mid summer.
With a smile on his face, he now says he is confident that the
"difficult steps" taken by the Government - the 25% salary cut in
the public sector for the last five months of the year and the VAT
raise to 24% will balance the budget revenues and the deficit will
stay under 7% of GDP this year.