The IMF sees Romania’s economic growth at 4% this year and expects annual inflation to come in at 4.2%. The current account deficit is seen at 5.5% of gross domestic product.
The IMF released its report on Romania in August, after consultations with Romanian officials. It said growth would continue to be driven by consumption and inflation would remain above target and recommended a durable fiscal consolidation to help curb the twin deficits and reduce the burden on monetary policy. The IMF also recommended Romania should redirect fiscal spending from salaries and pensions towards public investments and more efficient EU fund absorption.
Global growth is forecast at 3% for 2019, its lowest level since 2008–2009 and a 0.3 percentage point downgrade from the April 2019 World Economic Outlook. Trade tensions, which had abated earlier in the year, have risen again sharply, resulting in significant tariff increases between the United States and China and hurting business sentiment and confidence globally, the IMF said.