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2025-09-12 16:35:37
IMF Warns of Risks to Romania's Fiscal Sustainability ⑴ The International Monetary Fund (IMF) projected Romania's real GDP growth of 1.0% in 2025 and 1.4% in 2026. ⑵ The IMF noted that risks to the economic outlook favor downward growth and upward inflation. ⑶ Due to ongoing concerns about the implementation of the 2025-26 fiscal consolidation plan, the risk of a sovereign credit rating downgrade remains. ⑷ Medium-term fiscal consolidation and additional adjustments are crucial to restoring fiscal sustainability and market confidence. ⑸ If the reform plan is fully implemented, the fiscal deficit is projected to narrow to around 6% of GDP in 2026. ⑹ Without additional corrective measures, the IMF projects that Romania's budget deficit will only narrow to 5% of GDP by 2030, while public debt will rise to nearly 70%. ⑺ The IMF statement emphasized that Romania would need to implement additional measures amounting to approximately 0.67% of GDP annually starting in 2027 to reduce the deficit to below 3% over the medium term.
