“Economic recovery continues to accelerate. Exports have increased in the first half of the year and the farm output is better than in the previous year,” IMF mission head Andrea Schaechter told a press conference in Bucharest.
For 2014, the IMF forecasts an economic growth of 2.25% in Romania, also up from an increase of 2% initially envisaged.
Romania’s current account gap is seen shrinking to 2%-2.5% of GDP in 2013, while the budget deficit is expected to narrow below 1% of GDP by 2015, Schaechter said.
The government raised its deficit target to 2.3% of GDP from 2.1% of GDP initially at this year’s first budget revision approved Tuesday.
The authorities have also updated their forecast on this year’s GDP to 625.9 billion lei (EUR142.27 billion), from RON623.3 billion previously.
Joint teams from the IMF and the European Commission visited Bucharest between July 17 and July 31 for talks on a new loan agreement with the eastern European country.
Romania and its international partners have agreed on a EUR4 billion two-year loan package, pending approval at an IMF board meeting scheduled for this fall.
The authorities in Bucharest will treat the deal as precautionary, meaning they do not plan to draw on the available funds.