Romania not ruling out recession

Bucharest. Romania could slip into recession this year, when the economy could show a contraction of 1.0 percent to growth of 1.5 percent, Finance Minister Gheorghe Pogea said on Thursday.

Romania is currently in talks with the International Monetary Fund and the European Union over a possible financial bailout.

“Growth of anywhere between minus 1.0 percent and plus 1.5 percent is possible,” Pogea said after talks with experts from both the EU and the IMF.

According to the government’s 2009 budget, Bucharest is pencilling in growth of 2.5 percent this year, while both the IMF and the EU are projecting a contraction.