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IMF reduces the economic growth forecast for Romania to 4pc
The International Monetary Fund (IMF) has revised downwards the estimates regarding the advance of Romanian economy this year and next year, following the moderation of incentives that stimulated the growth in 2017, the ‘World Economic Outlook’ report, issued on Tuesday, reads.
In April, the IMF estimated that Malta and Romania will register the highest economic growth in Europe this year, of 5.7% and 5.1% respectively. In Tuesday’s report, the IMF has revised the estimated to 4% in 2018, by 1.1 percentage points less than in spring, hotnews.ro informs.
For 2019, the IMF estimated that Romania will register a 3.4% GDP growth, by 0.3 percentage points lower than in the report in April.
The ‘World Economic Outlook’ report reads that Romania registered a robust growth of 6.9% in 2017 due to the fiscal incentives and solid demand. The growth will slow down to 4% in 2018 and then to 3.4% in 2019, as the incentives would moderate.
The IMF sees a 4.7% average annual increase of consumer prices, with a lower evolution in 2019, down to 2.7%. In 2017 Romania registered an annual inflation rate of 1.3%.
The current account deficit estimates point to 3.5% of GDP in 2018 (down from 3.7% as estimated in April) and to 3.4% of GDP in 2019.
The IMF anticipates that world economy will grow by 3.7% in 2018, by 0.2 percentage points below the estimates in April.
The National Prognosis Commission (CNP) forecasted a GDP growth of 6.1% in 2018, followed by 5.7% in 2019 and 2020 and of 5% in 2021.