{
  "title": "Romania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania",
  "publication": "IMF Staff Country Reports, June 6, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2018/06/06/romania-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-45943",
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  "summary": "This 2018 Article IV Consultation highlights that Romania recorded strong economic growth in 2017, with record low unemployment and an improving financial sector.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Romania recorded strong economic growth in 2017, with record low unemployment and an improving financial sector.\n- Growth in 2017 was led by private consumption boosted by fiscal stimulus and wage increases, while investment lagged and structural reforms slowed.\n- Public investment fell to a multi-year low in percent of GDP with a low absorption of European Union funds.\n- Both the government deficit and current account deficit widened, respectively to 2.8 and 3.4 percent of GDP in 2017."
    },
    {
      "heading": "Key findings (2017)",
      "content": "- Strong economic growth driven by private consumption.\n- Record low unemployment.\n- Improving financial sector.\n- Fiscal stimulus and wage increases were major drivers of private consumption.\n- Investment lagged; structural reforms slowed.\n- Public investment fell to a multi-year low in percent of GDP.\n- Low absorption of European Union funds."
    },
    {
      "heading": "Fiscal and external balances",
      "content": "- Government deficit: 2.8 percent of GDP in 2017.\n- Current account deficit: 3.4 percent of GDP in 2017.\n- Public investment share of GDP: fell to a multi-year low (exact percent not specified in source text).\n- European Union funds absorption: characterized as low."
    },
    {
      "heading": "Projections and macroeconomic outlook (2018)",
      "content": "- Growth is expected to reach 5 percent in 2018—led again by continuing stimulus to private consumption from fiscal relaxation.\n- Outlook characterized by a continued current account deficit and elevated inflation.\n- Monetary policy: tightened in response to elevated inflation pressures."
    },
    {
      "heading": "Policy implications and priorities (implied by findings)",
      "content": "- Address reliance on fiscal stimulus and wage-driven private consumption to sustain balanced growth.\n- Strengthen incentives and capacity to increase public investment and improve absorption of European Union funds.\n- Reinforce structural reforms to boost investment and potential growth.\n- Monitor fiscal and external deficits given widening in 2017 (2.8 percent and 3.4 percent of GDP, respectively) and projected continued current account deficit in 2018.\n- Calibrate monetary policy tightening to contain elevated inflation while considering growth dynamics.\n\nRomania: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "Published: June 6, 2018",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484359495.002",
    "Romania recorded strong economic growth in 2017, with record low unemployment and an improving financial sector.",
    "Growth in 2017 was led by private consumption boosted by fiscal stimulus and wage increases, 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.",
    "Strong economic growth driven by private consumption.",
    "Record low unemployment.",
    "Improving financial sector.",
    "Fiscal stimulus and wage increases were major drivers of private consumption.",
    "Investment lagged; structural reforms slowed.",
    "Public investment fell to a multi-year low in percent of GDP.",
    "Low absorption of European Union funds.",
    "Government deficit: 2.8 percent of GDP in 2017.",
    "Current account deficit: 3.4 percent of GDP in 2017.",
    "Public investment share of GDP: fell to a multi-year low (exact percent not specified in source text).",
    "European Union funds absorption: characterized as low.",
    "Growth is expected to reach 5 percent in 2018—led again by continuing stimulus to private consumption from fiscal relaxation.",
    "Outlook characterized by a continued current account deficit and elevated inflation.",
    "Monetary policy: tightened in response to elevated inflation pressures.",
    "Address reliance on fiscal stimulus and wage-driven private consumption to sustain balanced growth.",
    "Strengthen incentives and capacity to increase public investment and improve absorption of European Union funds.",
    "Reinforce structural reforms to boost investment and potential growth.",
    "Monitor fiscal and external deficits given widening in 2017 (2.8 percent and 3.4 percent of GDP, respectively) and projected continued current account deficit in 2018.",
    "Calibrate monetary policy tightening to contain elevated inflation while considering growth dynamics.",
    "**Country Report**"
  ],
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