An IMF mission headed by Jan Kees Martijn will visit Bucharest November 5 - 8, 2024, to hold a regular staff visit, announced Geoff Gottlieb, IMF Senior Regional Representative for Central, Eastern and Southeastern Europe.

Romania's fiscal policy is expected to be on the top of the visit agenda, as it was at the last visit in February when the Fund expressed expectations of 6%-of-GDP deficit "in the coming years. 

"New measures will be needed to reduce the deficit to sustainable levels," the Fund's experts concluded at that time.

Romania's public deficit will likely hit 7.9% of GDP this year after it exceeded 5.4% of GDP in January-September.

The Fund's team will review recent economic and financial developments and update the macroeconomic outlook, the official press release reads.

In the latest "World Economic Outlook" report, recently published, the IMF has revised down to 1.9% the estimates regarding the advance of the Romanian economy this year, from 2.8% as forecast in April.

According to the new figures published by the Fund, after an increase of 2.1% last year, the advance of the Romanian economy will slow down to 1.9% this year and will accelerate to 3.3% in 2025. In the spring, the IMF estimated an advance of 2.8% of Romania's GDP in 2024, revised figures also down, compared to an advance of 3.8% forecast last fall.

Also, the international financial institution expects a further worsening of Romania's current account deficit, up to 7.5% of GDP in 2024, from a level of 7.1% of GDP, forecast in April. The IMF predicts a slight reduction in the current account deficit, up to 7% of GDP in 2025, compared to a decrease of up to 6.8% as estimated in the spring. According to IMF forecasts, Romania's current account deficit will remain at a high level even in 2029, when it will stand at 5.9% of GDP.

Currently, Romania does not have a financing agreement with the International Monetary Fund, but the financial institution annually evaluates the evolution of the Romanian economy, based on consultations on Article IV.

iulian@romania-insider.com

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