IMF cuts forecast for Romania’s economic growth this year to 2.4%

In its latest World Economic Outlook report, the International Monetary Fund (IMF) estimates that Romania's real economic growth will moderate to 2.4% in 2023. The figure is lower than the one estimated in the autumn forecast - plus 3.1%, Ziarul Financiar reported.

Thus, the IMF expects Romania's economy to slow down this year from the 4.8% annual growth reported in 2022. In 2024, the country's GDP is expected to increase by 3.7%.

At the same time, the IMF expects Romania to report lower inflation of 10.5% in 2023, to further decrease to 5.8% in 2024.

According to the same INF report, the current account balance will continue to adjust to -7.9% in 2023 and -7.7% in 2024, from -9.3 in 2022. Meanwhile, the unemployment rate will remain constant at 5.6% in 2023 and decrease slightly to 5.4% in 2024.

The European Bank for Reconstruction and Development (EBRD) also revised slightly downward its forecast for Romania's economy: 1.7% under the latest version of the Regional Economic Update. Meanwhile, the European Commission forecasted a GDP increase of 2.5% this year.

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