## Romania: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania

_IMF Staff Country Reports, November 14, 2025_

## Source details

**Canonical URL:** [Romania: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania](https://www.imf.org/en/publications/cr/issues/2025/11/13/romania-2025-article-iv-consultation-press-release-staff-report-and-statement-by-the-571753)

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## Bibliographic details
- Published: November 14, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229031547.002

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### Summary findings
- The Romanian economy is expected to grow gradually in the near term amid necessary fiscal consolidation addressing the widening twin deficits.
- Public finances have deteriorated, driven by significant increases in pension spending, public wages, and domestically financed capital expenditure, and added pressure on the current account.
- A large fiscal reform package aimed at reducing the deficit to below 6 percent of GDP in 2026, including a VAT rate hike and other tax measures, has helped avoid a cutoff of structural EU funds and a sovereign credit rating downgrade to non-investment status.
- Headline inflation is expected to remain elevated until mid-2026 due to the impact of the VAT rate hike and the end of energy price caps.

### Fiscal policy and public finances
- Deterioration drivers:
  - Significant increases in pension spending.
  - Significant increases in public wages.
  - Significant increases in domestically financed capital expenditure.
- Fiscal reform package:
  - Objective: reduce the deficit to below 6 percent of GDP in 2026.
  - Measures include a VAT rate hike and other tax measures.
- Outcomes:
  - Helped avoid a cutoff of structural EU funds.
  - Helped avoid a sovereign credit rating downgrade to non-investment status.

### Inflation and prices
- Headline inflation projection:
  - Expected to remain elevated until mid-2026.
  - Main contributors: the VAT rate hike and the end of energy price caps.

### Key statistics and publication metadata
- Publication title: Romania: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania
- Publication date: November 14, 2025
- Pages: 58
- Series: Country Report No. 2025/294
- Volume: 2025
- Issue: 294
- DOI: https://doi.org/10.5089/9798229031547.002
- ISBN: 9798229031547
- ISSN: 1934-7685
- Subjects: Fiscal consolidation, Fiscal policy, Inflation, Prices, Public debt
- Keywords: Europe, exchange rate, Financial Sector Assessment Program, Fiscal consolidation, Fund holding, Global, IMF-World Bank mission, Inflation, inflation expectation

*International Monetary Fund. Romania: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Romania. IMF Staff Country Reports 2025, 294 (2025).*

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_Source: https://www.imf.org/en/publications/cr/issues/2025/11/13/romania-2025-article-iv-consultation-press-release-staff-report-and-statement-by-the-571753_