IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2023-395.html
   My bibliography  Save this paper

Romania: 2023 Article IV Consultation-Press Release; and Staff Report; IMF Country Report No. 23/395

Author

Listed:
  • International Monetary Fund

Abstract

This 2023 Article IV Consultation discusses that Romania has weathered the economic shocks from the pandemic, Russia’s war in Ukraine, and the resulting surges in energy and food prices relatively well. Growth is expected to recover modestly in 2024, and to return to its potential rate in the medium term, but there are substantial risks. A weak fiscal position renders Romania vulnerable. The scope to respond to adverse developments is circumscribed by a structural budget deficit well in excess of sustainable levels. The recently adopted fiscal package offers welcome improvements in tax policy and should help reduce the fiscal deficit somewhat in 2024; but more will be needed. Announcing further tax reforms well in advance will help companies and households adjust to these changes. In addition, monetary policy should not be relaxed until core inflation is on a firm downward path as needed for returning headline inflation within the tolerance band by early 2025. There is significant room to underpin real income growth and further convergence with Western Europe. This requires investment in physical infrastructure as well as people, and strengthening the efficiency of the state.

Suggested Citation

  • International Monetary Fund, 2023. "Romania: 2023 Article IV Consultation-Press Release; and Staff Report; IMF Country Report No. 23/395," IMF Staff Country Reports 2023/395, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2023/395
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=542184
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2023/395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.