Romania: Staff Report for the 2002 Article IV Consultation

IMF Staff Country Reports, January 17, 2003

Source details

Since mid-2001, a combination of budget restraint, ambitious energy price adjustments, and prudent monetary policy moderated domestic demand and reduced the current account deficit in Romania.
Export and GDP growth were among the highest in the region, reflecting private investments in export-oriented consumer goods industries and competitiveness gains from the 1999 adjustment in the real effective exchange rate.
Rising productivity, complemented by moderate economy-wide wage growth, has preserved competitiveness.

Budget policy: Budget restraint since mid-2001 helped moderate domestic demand.
Energy policy: Ambitious energy price adjustments contributed to macroeconomic adjustment.
Monetary policy: Prudent monetary policy supported the moderation of domestic demand and external imbalances.
External sector: The current account deficit was reduced following the policy mix implemented since mid-2001.
Growth and competitiveness:
- Export growth: Among the highest in the region (no numeric value provided).
- GDP growth: Among the highest in the region (no numeric value provided).
- Competitiveness improvement: Attributed to the 1999 adjustment in the real effective exchange rate and rising productivity.
Labor market and wages: Moderate economy-wide wage growth helped preserve competitiveness.

Subjects: Credit, Currencies, Economic sectors, Energy sector, External debt, Labor, Money, Wages
Keywords: authority, Central and Eastern Europe, CR, Credit, Currencies, deficit, Eastern Europe, Energy sector, EU accession, EU economy, Europe, Global, IMF staff representative, ISCR, staff appraisal, staff welcome, Wages, Western Europe