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IMF criticizes Romania's low level of public investments

A document published by the International Monetary Fund (IMF) after consultations with Romania says that a more cautious fiscal discipline would help rebalance Romania’s economy and lessen the burden on the monetary policy.

2018-06-07 11:00:09

In the context of solid economic growth, the IMF recommends a deficit under 3 per cent, suggesting that some new fiscal measures may be necessary to achieve this objective.

The report warns that as Romania's economy shows signs of overheating, "there is a risk that the current policy trajectory increases macroeconomic volatility, undermines the capacity to withstand adverse shocks, and eventually slows down convergence toward the advanced EU countries."

The Fund criticized the decrease of investments in the public sector, as well as the lack of structural reforms and high inflation rate.



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