IMF requests from Romania right policy mix, ambitious structural reforms to restore fiscal sustainability
The Board of the International Monetary Fund (IMF) requests that Romania implement a right mix of policies and ambitious structural reforms to support growth, restore fiscal sustainability and protect financial stability, according to the report prepared by the international financial institution, following the Bucharest consultations on Article IV.
''Executive Directors welcomed the recently adopted large fiscal reform package for 2025-26, which marks an important step in addressing the widening twin deficits. Amid a necessary large fiscal consolidation, and with risks tilted to the downside, Directors called for the right policy mix and ambitious structural reforms to support growth, restore fiscal sustainability, and safeguard financial stability,'' reads the quoted document.
IMF directors stressed the importance of fully implementing the planned fiscal consolidation in 2025-2026, followed by further adjustments over the medium term to strengthen market confidence and ensure fiscal sustainability.
An IMF mission led by Joong Shik Kang reviewed recent developments in the Romanian economy in Bucharest in September.
The Fund's team met with officials from the Ministry of Finance, the National Bank of Romania, and other government agencies, as well as representatives of the private sector and non-governmental organizations.
Article IV consultations are a mandatory monitoring exercise for all member countries. Their purpose is to examine the financial and economic situation at the national level and to formulate general recommendations on monetary, financial, and economic policies to be followed to ensure stability and positive developments in the economy.
Currently, Romania does not have an ongoing financing agreement with the International Monetary Fund, but the financial institution annually evaluates the evolution of the Romanian economy, based on Article IV consultations.
This year, an IMF mission also took place in Bucharest, also led by Joong Shik Kango, from February 3 to 7, 2025.
The International Monetary Fund predicts that Romania's economy will grow by 1% in 2025 and by 1.4% in 2026, estimates that are lower compared to those in the spring, of 1.6% and 2.8%, respectively. AGERPRES (RO - writing by: Andreea Marinescu; EN - writing by: Bogdan Gabaroi)
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