“The 5.1% economic growth estimate for 2018 was based on data available in March. The forecast is being revised and based on the most recent indicators and the slowdown in the first half of the year it will be revised down to 4%-4.5% in October,” said Hajdenberg.
On the medium term, IMF sees Romania’s economic growth slowing down towards 3-3.5%.
“For this year we estimate a budget deficit of 3.6% of GDP. We are still analyzing the data from the budget revision but we are concerned Romania will overshoot the 3% deficit target,” the IMF official said.
Romania’s government on Wednesday passed an emergency decree revising the 2018 state budget, based on a projected GDP growth of 5.5% and vying to keep the deficit target at 2.97% of GDP.