{
  "title": "Romania: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Romania",
  "publication": "IMF Staff Country Reports, August 30, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/08/30/romania-2019-article-iv-consultation-press-release-staff-report-staff-supplement-and-48634",
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  "summary": "This 2019 Article IV Consultation with Romania discusses that growth in 2019 is expected to stay above potential at 4 percent, led by continued fiscal stimulus and strong wage growth, and be accompanied by further widening of current account and fiscal deficits.",
  "sections": [
    {
      "heading": "Growth outlook and macroeconomic imbalances",
      "content": "- Growth in 2019 is expected to stay above potential at 4 percent, led by continued fiscal stimulus and strong wage growth.\n- Growth is accompanied by further widening of current account and fiscal deficits.\n- Rising vulnerability calls for a balanced macroeconomic policy mix built on durable fiscal consolidation."
    },
    {
      "heading": "Main findings and risks",
      "content": "- Continued fiscal stimulus and strong wage growth are driving above-potential expansion and widening imbalances.\n- Widening twin deficits (current account and fiscal) increase external and macroeconomic vulnerability.\n- The more fiscal policy tightens, the less monetary tightening is needed for stabilization."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Start durable fiscal consolidation taking advantage of strong growth.\n- Ensure consolidation is underpinned by high-quality measures to rein in the twin deficits and improve the macroeconomic policy mix.\n- Modernize revenue administration.\n- Improve expenditure efficiency.\n- Reassess the new pension law to balance social needs and fiscal sustainability.\n- Pursue a balanced macroeconomic policy mix to mitigate external pressure and reduce the burden on monetary policy."
    },
    {
      "heading": "Expected policy effects and objectives",
      "content": "- High-quality fiscal consolidation would:\n  - Reduce the burden on monetary policy for macroeconomic stabilization.\n  - Mitigate external pressure by containing the current account deterioration.\n  - Bolster growth potential by improving the balance between consumption and investment."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Balance of payments; Current account deficits; Expenditure; Fiscal policy; Fiscal stance; Inflation; Prices; Public debt\n- Keywords: August policy meeting; CR; Current account deficits; deficit; EU absorption; EU rule; Fiscal stance; GDP expenditure component; Global; IMF staff calculation; Inflation; inflation pressure; ISCR; share of foreign direct investment\n\n---\n\n Content in this bundle\n\n- 1romea2019001\n  - 1romea2019001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1romea2019001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: August 30, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513512341.002",
    "Growth in 2019 is expected to stay above potential at 4 percent, led by continued fiscal stimulus and strong wage growth.",
    "Growth is accompanied by further widening of current account and fiscal deficits.",
    "Rising vulnerability calls for a balanced macroeconomic policy mix built on durable fiscal consolidation.",
    "Continued fiscal stimulus and strong wage growth are driving above-potential expansion and widening imbalances.",
    "Widening twin deficits (current account and fiscal) increase external and macroeconomic vulnerability.",
    "The more fiscal policy tightens, the less monetary tightening is needed for stabilization.",
    "Start durable fiscal consolidation taking advantage of strong growth.",
    "Ensure consolidation is underpinned by high-quality measures to rein in the twin deficits and improve the macroeconomic policy mix.",
    "Modernize revenue administration.",
    "Improve expenditure efficiency.",
    "Reassess the new pension law to balance social needs and fiscal sustainability.",
    "Pursue a balanced macroeconomic policy mix to mitigate external pressure and reduce the burden on monetary policy.",
    "High-quality fiscal consolidation would:",
    "Subject: Balance of payments; Current account deficits; Expenditure; Fiscal policy; Fiscal stance; Inflation; Prices; Public debt",
    "Keywords: August policy meeting; CR; Current account deficits; deficit; EU absorption; EU rule; Fiscal stance; GDP expenditure component; Global; IMF staff calculation; Inflation; inflation pressure; ISCR; share of foreign direct investment",
    "**1romea2019001**"
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