## Romania: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania

_IMF Staff Country Reports, May 25, 2017_

## Source details

**Canonical URL:** [Romania: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania](https://www.imf.org/en/publications/cr/issues/2017/05/25/romania-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-44944)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/05/25/romania-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-44944/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/05/25/romania-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-44944/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/05/25/romania-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-44944/bundle-manifest.json)

## Bibliographic details
- Published: May 25, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484301579.002

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### Overview
- Highlights Romania’s strong economic growth in 2016, resulting in a closed output gap.
- Private consumption was boosted by an expansionary and procyclical fiscal policy and wage increases.
- There has been welcome progress in reducing banking sector nonperforming loans.

### Fiscal stance and demand
- The cyclically adjusted budget deficit grew by 1.5 percent of GDP in 2016.
- The increase in the cyclically adjusted deficit reflected large tax rate cuts and wage increases.
- Private consumption expansion was driven by the above fiscal policy and higher wages.

### Inflation developments
- Headline inflation remained subdued owing to:
  - indirect tax cuts,
  - administrative price adjustments, and
  - low euro area inflation and oil prices.

### Banking sector
- Noted progress in reducing nonperforming loans in the banking sector.

### Growth outlook and projections
- Growth is expected to reach 4.2 percent in 2017.
- Growth is expected to moderate to 3.5 percent in the medium term.

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17133.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17133.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/05/25/romania-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-44944_