IMF: Romania vulnerable to the international crisis

IMF appreciates the large volume of foreign investments since Romania joined the European Union. However, these investments have overheated the economy, while reducing unemployment and increasing wages. Gross domestic product advanced 6 percent in 2007, and 8.2 percent in the first quarter of 2008. On the other hand, this increase has stimulated imports and it is expected that the current account deficit will reach 14.5 percent in 2008. 

Several weeks ago, Albert Jaeger, IMF Representative for Romania and Bulgaria, indicated that the current account deficit, inflation, and financial turbulence are the institution’s main concerns as regards Romania. Jaeger also spoke about Romania’s budget and fiscal policy. Structural reforms and the impact of the international economic environment on Romania were other sensitive issues for its economy. The IMF Representative added that Romania has made little progress in terms of structural reforms, especially on the work force market.