An IMF mission headed by Jan Kees Martijn will visit Bucharest November 5 – 8, 2024, to hold a regular staff visit, announced Geoff Gottlieb, IMF Senior Regional Representative for Central, Eastern and Southeastern Europe.<\/p>\n
Romania’s fiscal policy is expected to be on the top of the visit agenda, as it was at the last visit in February when the Fund expressed expectations of 6%-of-GDP deficit “in the coming years.\u00a0<\/p>\n
“New measures will be needed to reduce the deficit to sustainable levels,” the Fund’s experts concluded at that time.<\/p>\n
Romania’s public deficit will likely hit 7.9% of GDP this year after it exceeded 5.4% of GDP in January-September.<\/p>\n
The Fund’s team will review recent economic and financial developments and update the macroeconomic outlook, the official press release reads.<\/p>\n
In the latest “World Economic Outlook” report, recently published, the IMF has revised down to 1.9% the estimates regarding the advance of the Romanian economy this year, from 2.8% as forecast in April.<\/p>\n
According to the new figures published by the Fund, after an increase of 2.1% last year, the advance of the Romanian economy will slow down to 1.9% this year and will accelerate to 3.3% in 2025. In the spring, the IMF estimated an advance of 2.8% of Romania’s GDP in 2024, revised figures also down, compared to an advance of 3.8% forecast last fall.<\/p>\n
Also, the international financial institution expects a further worsening of Romania’s current account deficit, up to 7.5% of GDP in 2024, from a level of 7.1% of GDP, forecast in April. The IMF predicts a slight reduction in the current account deficit, up to 7% of GDP in 2025, compared to a decrease of up to 6.8% as estimated in the spring. According to IMF forecasts, Romania’s current account deficit will remain at a high level even in 2029, when it will stand at 5.9% of GDP.<\/p>\n
Currently, Romania does not have a financing agreement with the International Monetary Fund, but the financial institution annually evaluates the evolution of the Romanian economy, based on consultations on Article IV.<\/p>\n