BUCHAREST, Sept. 12 (Xinhua) — The International Monetary Fund (IMF) has projected 1 percent economic growth for Romania in 2025 and 1.4 percent in 2026, revising down its April forecasts of 1.6 percent and 2.8 percent, respectively.
In a statement released Friday, the IMF said risks to the outlook remain tilted to the downside for growth and to the upside for inflation.
Romania’s inflation rate reached 9.9 percent in August 2025, driven by value-added tax (VAT) increases and the removal of the energy price cap. The IMF cautioned that inflationary pressures could persist, citing rising energy costs and wage growth as key risks.
The IMF also highlighted Romania’s fiscal challenges, noting that the fiscal deficit rose to 8.7 percent of gross domestic product (GDP) in 2024, while the current account gap widened to 8.4 percent. Although it welcomed the government’s 2025-2026 reform package, the IMF stressed that additional measures beyond 2027 will be needed to reduce the deficit below 3 percent and stabilize public debt.
To strengthen the economy, the IMF urged Romania to advance structural reforms, enhance public spending efficiency, and increase labor-force participation, while maintaining a cautious monetary policy until inflation shows a clear downward trend.
