April 19 (SeeNews) - Romania's gross domestic product (GDP) will grow by 2.2% this year, the International Monetary Fund (IMF) said on Tuesday, cutting its forecast for 4.8% growth made in October.
In 2023, the IMF expects Romania's economy to expand by 3.4%, the global lender said in the April 2022 edition of its World Economic Outlook (WEO) report.
Romania's current account deficit is forecast to edge down to 7% of GDP in 2022, from 7.1% in 2021. In 2023, the current account gap is seen narrowing to 6.5%, according to the report.
Consumer price inflation in Romania is seen quickening to 9.3% in 2022 from 5% last year. In 2023, the IMF sees inflation slowing down to 4%.
Unemployment in Romania is projected to rise to 5.6% at the end of 2022, from 5.3% in 2021. In 2023, the unemployment rate is projected to edge down to 5.5%.
The IMF also said it expects the GDP of Emerging and Developing Europe area comprising Romania, Russia, Turkey, Poland, Ukraine, Hungary, Belarus, Bulgaria, Serbia and Croatia to contract by 2.9% in 2022 and bounce back to 1.3% growth next year.
"The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest," the IMF said in the report.
The IMF's estimations are more pessimistic than those of the Romanian government, which targets economic growth of 4.3% in 2022 and 5.1% in 2023.
Earlier this month, the World Bank said Romania's economy is expected to grow by 1.9% in 2022 with risks strongly tilted to the downside, slashing its January forecast of a 4.3% GDP growth.
In March, the European Bank for Reconstruction and Development (EBRD) said Romania's GDP will increase by 2.8% in 2022, lowering its November forecast for a rise of 4.4%.
(1 euro= 4.9415 lei)