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IMF lifts Romania's 2021 GDP growth forecast to 7%

IMF lifts Romania's 2021 GDP growth forecast to 7% Romania, economy

BUCHAREST (Romania), October 12 (SeeNews) - Romania's gross domestic product (GDP) will grow by 7% this year, the International Monetary Fund (IMF) said on Tuesday, revising upwards its forecast for 6% growth made in April.

In 2022, the IMF expects Romania's economy to grow by 4.8%, the Fund said in the October edition of its World Economic Outlook (WEO) report, maintaining its April projection.

Romania's current account deficit is forecast to rise to 5.7% of GDP in 2021, from 5.2% in 2020. In 2022, the current account gap is seen narrowing to 5.5%, according to the report.

Consumer price inflation is seen quickening to 4.3% in 2021 from 2.6% in 2020. In 2022, the IMF sees inflation slowing to 3.4%.

Unemployment in Romania is projected to edge down to 4.9% at the end of 2021, from 5% in 2020. In 2022, the unemployment rate is projected to remain at 4.9%.

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 grow by 6% in 2021 and by 3.6% in 2022.

Romania’s economic output will increase by an estimated 7% in 2021, finance ministry analysts said in August, revising their previous forecast for 5% growth.

Romania's economy contracted by 3.9% in 2020, compared to a 4.1% expansion in the previous year.

Earlier this month, the World Bank said that Romania's economy is expected to grow by 7.3% this year, improving its June forecast by 1.3 percentage points.

(1 euro= 4.9485 lei)