Romania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania

June 6, 2018

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Format: Chicago

Romania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania, (USA: International Monetary Fund, 2018) accessed December 11, 2024

Summary

This 2018 Article IV Consultation highlights that Romania recorded strong economic growth in 2017, with record low unemployment and an improving financial sector. Private consumption boosted by fiscal stimulus and wage increases led the strong growth, while investment lagged and structural reforms slowed. Public investment fell to a multi-year low in percent of GDP with a low absorption of European Union funds. Both the government deficit and current account deficit widened, respectively to 2.8 and 3.4 percent of GDP in 2017. Growth is expected to reach 5 percent in 2018—led again by continuing stimulus to private consumption from fiscal relaxation—and accompanied by a current account deficit and elevated inflation, even as monetary policy is tightened.

Subject: Banking, Capital spending, Expenditure, Inflation, Prices, Public debt, Revenue administration, Social security contributions, Taxes

Keywords: Capital spending, Central Asia, CR, Debt-service-to-income ratio, Deficit, EU absorption, EU funds, EU rule, Europe, Global, Growth, Headline inflation, Inflation, ISCR, Management institution, Rate, Social security contributions

Publication Details

Pages:

73
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/148
Stock No:

1ROMEA2018001
ISBN:

9781484359495
ISSN:

1934-7685

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