Romania: Selected Issues
IMF Staff Country Reports, March 27, 2015
Source details
- Canonical URL
- Romania: Selected Issues
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Bibliographic details
- Published: March 27, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475553116.002
Key findings
- Since the financial crisis, fiscal and current account deficits in Romania 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.
- 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.
Simulations and projections
- Methodology: European Union’s production function methodology (as employed by IMF staff simulations).
- Central quantitative outcome: real GDP increases by about 1 percent initially.
- Timing: impact peaks in 2025.
Policy implications and recommendations
- Prioritize boosting quality public infrastructure spending to:
- Support domestic demand.
- Raise potential GDP growth, especially in a low growth environment.
- Emphasize the quality of public investment to maximize growth payoffs rather than focusing solely on investment volume.
Source: IMF Staff Country Report "Romania: Selected Issues" (March 27, 2015).
Content in this bundle
- Romania: Selected Issues; IMF Country Report No. 15/79; March 10, 2015
- ROMÂNIA: ASPECTE SELECTATE; Raport de Ţară al FMI Nr. 15/80; Martie 2015