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05 November 2013

Romania: Statement of the European Commission and IMF Staff Visit


European Commission and IMF Teams visited Bucharest for the first review of its economic support programme. The teams found that the programme remains broadly on track. All end-September 2013 performance criteria were met and progress was made toward meeting most structural benchmarks.

Real GDP growth in 2013 has strengthened on the back of strong agricultural output and robust export performance, and is now projected to reach 2.2 per cent. Domestic demand, however, remains subdued contributing to a strong adjustment of the current account to 1.2 per cent of GDP. In 2014, real GDP growth is forecast to remain flat at 2.2 per cent with growth drivers gradually switching from net exports to domestic demand, and in particular to investment which is set to increase as the EU funds absorption accelerates. Inflation entered the central bank’s target band in September, reflecting largely lower food prices, and it is expected to close 2013 at around 2 per cent. Notwithstanding the ongoing deterioration in asset quality, the banking sector remains resilient and has maintained sufficient capital buffers and reassuring loan-loss provisions.

The authorities have continued the fiscal adjustment and met the September fiscal deficit target as revenue shortfalls were compensated by expenditure restraint.

The structural reform efforts are bringing good results in some areas. The successful initial public offering for 15 per cent of Romgaz represents a landmark transaction for the state owned enterprise sector and for Romania’s capital markets. Healthcare reform preparations are advancing, the price liberalisation agenda for energy is on track, and steps were taken to strengthen public financial management, such as investment prioritisation.

Full press release



© European Commission


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