Hidden Bibliographic Details
| Varying Form of Title: | Romania, 2015 article IV consultation
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| Other authors / contributors: | International Monetary Fund.
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| ISBN: | 1475552548
9781475552546
9781475552546
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| ISSN: | 1934-7685
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| Notes: | "March 2015."
"March 10, 2015"--Page 2 of pdf.
Includes bibliographical references.
Online resource; title from pdf title page (IMF Web site, viewed April 2, 2015).
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| Summary: | KEY ISSUES Background: Romania has in large part reduced internal and external imbalances through sound macroeconomic policies. However, income convergence with the EU has been slow and weak public infrastructure has emerged as a bottleneck for faster growth. At the same time, Romania remains vulnerable to external shocks and the repair of balance sheets is not yet complete. Policy recommendations: Going forward, sustainable macroeconomic policies need to be combined with measures that boost the efficiency of public spending, reinvigorate delayed state-owned enterprise (SOE) reforms, and resolve crisis legacies in the financial sector. Fiscal policy. Maintain the fiscal adjustment achievements, put public debt on a firm downward path, ensure provision of higher quality public infrastructure, and improve revenue administration and public expenditure management including through higher absorption of EU funds. Monetary policy. Keep the easing bias as inflation has fallen below the target band and support a private credit rebound. Improve the policy framework by gradually moving to full-fledged inflation targeting. Financial sector. Maintain the intense watch on the banking system focused on asset quality and non-performing loans reduction, further strengthen non-bank supervision, develop capital markets, and create effective insolvency frameworks. Structural reforms. Improve financial performance and generate resources for investment of SOEs by implementing good governance principles, restructuring and increased private ownership; further deregulate energy markets. Outlook and risks: Staff expects sustained growth supported by strong domestic demand. Better EU funds absorption could boost the growth potential by about 1/2 percent annually. However, increased volatility in the external environment and failure to implement a much needed infrastructure upgrade present downside risks.
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| Other form: | Print Version: 9781475552546
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| Standard no.: | 10.5089/9781475552546.002
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