Romania: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania
IMF Staff Country Reports, September 26, 2022
Source details
- Canonical URL
- Romania: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania
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Bibliographic details
- Published: September 26, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400220180.002
Overview and key findings
- After a solid recovery from the pandemic, Romania is now, like other EU countries, facing strong headwinds related to the war in Ukraine.
- Output reached pre-crisis levels in H1 2021 and growth in Q1 2022 was strong.
- Inflation has risen rapidly.
- The external and fiscal positions are weak.
- The authorities are implementing a support package of energy price caps and subsidies for vulnerable groups.
Macro-fiscal and external assessment
- Growth:
- Output reached pre-crisis levels in H1 2021.
- Growth in Q1 2022 was strong.
- Inflation:
- Inflation has risen rapidly.
- External and fiscal positions:
- External position: weak.
- Fiscal position: weak.
- Policy measures:
- Authorities implementing energy price caps and subsidies for vulnerable groups (cap scheme).
Policy implications and recommendations (implied by assessment)
- Address rapid inflation pressures through appropriate macroeconomic policy measures.
- Strengthen external and fiscal positions to withstand spillovers from the war in Ukraine.
- Calibrate support measures (energy price caps and subsidies) to protect vulnerable groups while limiting adverse fiscal and external effects.
Content in this bundle
- War in Ukraine—Spillovers to Romania