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Romania's economic program takes into account the risk of an economic recession for the first time after 9 years

de A.C.
Luni, 2 martie 2009, 23:29 English | Business

The convergence program submitted to the European Commission foresees an increase in the age of retirement, limited increase of salaries and no further employments in the public sector for 2010-2011, Mediafax reads. For the first time in 9 years the government takes into account the risk of an economic recession.

The main provisions of the convergence program:

  • Romania's economy will register an average increase of 4.2% for 2009-2011
  • real GDP growth rates for 2010 and 2011 are forecast at 4.5% and 5.5%
  • the government takes into account the risks of an economic recession if the effects of the crisis will get worse or if the oil, gas or food prices will have an unfavorable evolution
  • retirement age will increase
  • salaries for the public sector will be increased in 2010-2011 at a level correlated with the inflation rate but the public sector will not hire any longer
  • direct foreign investments in Romania will decrease considerably, from 9 billion euro in 2008 to 4.7 billion euro during the international economic crisis but will increase to 5.4 billion euro in 2010
  • the government will introduce a new taxing system for those economic activities that are not sufficiently taxed
  • the inflation target for 2010 was set at the 2009 level, at 3.5%

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