IMF has improved its estimates for Romania's economic growth in 2017 and 2018

The International Monetary Fund (IMF) has revised its growth estimates for the Romanian economy this year, from 4.2% to 5.5%, according to the latest World Economic Outlook, published by the international financial institution.

The IMF has also improved its forecast for the growth rate of Romania's economy in 2018 to 4.4%, compared to the 3.4% forecast projected in April. 

Also, the  document shows that Romania and Iceland will record this year's largest economic growth in Europe, of 5.5%. Overall, Europe will see an economic growth of 2.5%, and emerging Europe, including Romania, will have a GDP growth of 4.5%. 

"Growth prospects have been improved for emerging Europe in 2017, reflecting stronger growth in Turkey, Russia and other countries in the region. For the whole group, expansion will reach 4.5% in 2017 (from 3% previously projected) and to 3.5% in 2018 (from 3.3% in April)," said the IMF in the World Economic Outlook. 

Regarding the evolution of consumer prices in Romania this year, the estimates of the IMF were revised downwards to a 1.1% increase, from a 1.3% advance projected in April. The pace of rising prices accelerates in 2018 to 3.3%, above the 3.1% previously projected by the financial institution.

The IMF also revised the current account deficit projected by Romania to 3% in 2017 (from 2.8% forecast in April) and 2.9% in 2018 (from 2.5%). On the other hand, the IMF revised downwards estimates for the unemployment rate in Romania, which is set to stand at 5.3% this year, compared  to 5.4% as previously estimated. Also, in 2018 the unemployment rate is expected to reach 5.2%, similar to the forecast in April. 

NIS revised upward the economic growth of Romania in the Q2, to 6.1%

The National Institute of Statistics (NIS) has recently released new figures regarding the GDP growth. According to the revised data, Romania's economy climbed in the second quarter 1.7% in real terms compared to the first quarter this year and 6.1% compared to the same quarter of the previous year. 

In the first six months of this year, the advance of the Romanian economy was 5.9% on gross series and 5.8% on the seasonally adjusted series. Data released in September showed that GDP grew by 5.8%, on gross series, in the first six months of the current year compared to the same period in 2016, and 5.7% on the seasonally adjusted series. 

The most significant contribution to GDP growth was recorded in the final consumption - 5.2%, slightly lower than the data published in September showing a contribution of 5.4%.