IMF Staff Country Reports

Romania : Selected Issues

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

March 27, 2015

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Selected Issues paper discusses benefits of boosting quality public infrastructure spending in Romania. Since the financial crisis, fiscal and current account deficits have been tackled, but the infrastructure deficit has widened. Quality public investment in infrastructure can boost domestic demand and potential GDP growth, particularly in low growth environments. The IMF staff simulations employing the European Union’s production function methodology show significant growth benefits from higher quality infrastructure spending. As a result of higher investment, real GDP would increase by about 1 percent initially with the impact peaking in 2025.

Series:

Country Report No. 15/80

Subject:

Export performance Fiscal policy Fiscal reforms Global competitiveness Inflation targeting Infrastructure Labor markets Labor taxes Monetary policy Public enterprises Public investment Romania Selected Issues Papers

Notes:

Also Available in Romanian