IMF projects 2.8% economic growth in Romania this year and 3.6% in 2025

The Romanian economy will grow by 2.8% in 2024, according to the latest World Economic Outlook report published by the International Monetary Fund (IMF). This is a significant downward revision from the 3.8% projected by the Fund last autumn but more than three times the 0.8% growth forecast for the eurozone.

The IMF expects the Romanian economy to accelerate to 3.6% in 2025, Economedia.ro reported.

The Fund's report does not touch on the topic of fiscal consolidation, which is broadly expected to constrain Romania's economic growth next year.

Regarding inflation, the IMF forecasts that Romania will register an average annual growth of 6% this year (more than the central bank's projection) after a 10.4% advance in 2023. The pace of price growth will slow down significantly only in 2025 to 4%.

Also, regarding Romania's current account deficit, the IMF expects it to stagnate at 7.1% of GDP in 2024, not far from 2023, and will slightly decline to 6.8% of GDP in 2025.

(Photo source: Deanpictures/Dreamstime.com)