IMF cuts 2019 GDP forecast for Romania to 3.1%

The International Monetary Fund (IMF) revised its estimates for the evolution of the Romanian economy down to 3.1% from 3.4% last October, while also forecasting higher inflation rate and wider current account deficit, according to the latest World Economic Outlook published on April 9.

Romania’s GDP is thus expected to further decelerate from 4.1% in 2018 to 3.1% in 2019 and 3.0% in 2020, which is also the IMF’s long-term growth estimate (for 2024).

The IMF also revised its estimate on the evolution of consumer prices in 2019 upwards to an average rate of 3.3%, compared with a 2.7% advance projected in autumn. The average inflation will marginally ease to 3.0% in 2020.

The current account deficit projections are also higher, at 5.2% of GDP, from 3.4% projected last autumn. For 2020, the IMF forecasts Romania’s current account deficit at 4.8% of GDP.

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