The IMF’s latest forecast for Romania’s 2018 economic growth is below the government’s projection of a 6.1% increase. Romania’s consumer prices are seen rising by 4.7% year-on-year in 2018 and by 3.1% in 2019, the IMF also said in its WEO report.
Romanian consumer prices accelerated further in March 2018, to an annual rate of 5%, from an annual rate of 4.7% in February, the highest level in six years, and Romania’s GDP grew by a revised 6.9% in 2017, preliminary official data from the country’s statistical office INS showed last week.
The IMF revised downwards its forecast on Romania’s unemployment rate to 4.6% in 2018, from 5.2% previously estimated. In 2019, the unemployment rate is expected to stand at 4.6%, the report also reads.
The IMF revised upwards its forecast on Romania’s current account deficit, to 3.7% of the GDP in 2018, from 2.9% of the GDP forecasted in October 2017. In 2019, the IMF predicts a current account deficit of 3.7% of the GDP.
According to the IMF, Malta will record the biggest economic growth in Europe in 2018, of 5.7%, followed by Romania with 5.1%.
Overall, Europe will record a 2.7% economic growth in 2018 and of 2.3% in 2019, and the emerging Europe region, which includes Romania, will see a GDP growth of 4.3% in 2018 and of 3.7% in 2019. Growth in emerging markets and developing economies is expected to increase further, from 4.8% in 2017 to 4.9% in 2018 and 5.1% in 2019, the report reads.