IMF upgrades Romania’s 2019 growth forecast

The International Monetary Fund (IMF) has revised upward from 3.1% in April to 4% the forecast for Romania’s GDP growth this year, raising at the same time its projections for the inflation rate and the current account deficit, according to the latest World Economic Outlook, published on Tuesday, October 15.

The Fund also revised upward the forecast for next year’s growth from 3.0% to 3.5%.

"Several countries in Central and Eastern Europe are showing strong growth, amidst strong domestic demand and rising wages," IMF experts say.

On the downside, Romania will achieve robust growth at the expense of internal stability (price stability) and external stability (current account balance).

IMF assesses the average consumer price inflation this year to reach 4.2%, versus 3.3% projected in the spring. Also, the IMF has revised upward the estimates regarding the current account deficit registered by Romania this year, to 5.5% of GDP from 5. 2% under the previous forecast. The current account gap is expected to remain above 5% (at 5.2%) in 2020, compared to a 4.8% forecast in the spring.

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