ECONOMY FINANCE&BANKING

IMF improves Romania’s GDP growth outlook in 2016 to 4.2 pc

The International Monetary Fund (IMF) revised upward, to 4.2 percent, the Romanian economy’s outlook for this year, according to the latest World Economic Outlook report published on Tuesday. Back in October, the IMF was estimating that Romania’s GDP would grow by 3.9 percent this year.

According to the IMF’s forecast, Ireland is the only European country that will surpass Romania’s economic growth this year (5 percent), while Europe as a whole will register an economic growth of 2 percent. Emerging Europe, a region in which Romania is included, will register a GDP growth of 3.5 percent.

In its turn, the World Bank forecasts that Romania’s economic growth rhythm will accelerate to 4 percent in 2016, backed by an expansionist fiscal policy and labour market reforms, however it warns that Romania risks entering the excessive deficit procedure.

Likewise, the IMF revised upward also its estimates on Romania’s current account deficit in 2016, from -1.5 percent last October to -1.7 percent. The current account deficit will grow in 2017, when it is expected to reach -2.5 percent.

A piece of good news is the drop in the unemployment rate, which according to the IMF is expected to fall from 6.8 percent in 2015 to 6.4 percent in 2016 and 6.2 percent in 2017.

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