An IMF team was on a one-week visit to Bucharest,
\nwhere they discussed with the Romanian authorities about the country’s
\nmacro-economic prospects and budget policies for next year. <\/p>\n
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The visit was also designed as a preparation for a
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The
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IMF
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Also,
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The
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In
Economic activity in Romania remains strong, with unemployment at a record low, is one of the conclusions of an IMF staff visit to Romania<\/p>\n","protected":false},"author":107,"featured_media":49023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29081,31693,28903],"coauthors":[],"class_list":["post-79512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-ebrd","tag-gdp","tag-imf"],"acf":[],"yoast_head":"\n
\nconsulting mission due early next year. <\/strong>Economic activity in Romania
\nremains strong with unemployment at a record low, is one of the IMF experts’
\nconclusions. However, according to a news release issued by the international
\nfinancial institution, despite several years of strong growth, the budget
\ndeficit has gone up rather than down, as it should during good times, and the
\n2018 target remains at risk without further measures. <\/p>\n
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\n2019 budget and the medium-term financial framework should target smaller
\ndeficits, in line with the commitments to the European Union, and should keep
\nthe public debt to GDP ratio on a downward trend. In this respect, current
\ninitiatives to improve the efficiency of public spending, such as expenditure
\nreviews and centralized procurement, are welcome, says the IMF, adding that the
\nmodernization of revenue administration is also essential.<\/p>\n
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\nexperts also argue that increases in public-sector salaries and planned changes
\nto pension benefits should be reassessed for their negative implications for
\nfiscal sustainability and long-term growth. <\/p>\n
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\nin view of enhancing the economic growth potential, structural reforms and good
\ngovernance are needed. In this regard, strengthening the institutions in charge
\nwith public investment is a priority, to help address Romania’s large
\ninfrastructure gap, including by means of facilitating better absorption of EU
\nfunds, reads the IMF news release. <\/p>\n
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\nFund forecasts a 4% growth rate for 2018, a 3.5% year-end inflation rate,
\nrelatively stable current account deficit in the medium run and a budget
\ndeficit of over 3% of the GDP, both this year and in 2019, if current policies
\nare maintained. <\/p>\n
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\nturn, the European Bank for Reconstruction and Development estimates a 4.2%
\neconomic growth rate in Romania this year, with a slow-down to 3.6% in 2019.
\nThe IMF and EBRD forecasts are significantly higher than the ones made by the
\nEuropean Commission, which expects Romania’s economic growth rate to go down to
\n3.6% this year and 3.8% next year, as the rise in private consumption will slow
\ndown and the negative balance of trade will deepen.<\/p>\n
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