The International Monetary Fund (IMF) has revised upwards from 4.2 percent to 5.5 percent estimates on the Romanian economy’s evolution this year, according to its latest World Economic Outlook.
The IMF also improved its forecast for the growth rate of Romania’s GDP in 2018 to 4.4 percent, compared to the 3.4 percent advance estimated in April.
According to IMF’s flagship report, Romania and Iceland will record this year’s largest economic growth in Europe, of 5.5 percent.
Overall, Europe will see an economic growth of 2.5 percent, and Emerging Europe, including Romania, will have a GDP growth of 4.5 percent.
IMF also raised its forecast for growth to 3.6 percent this year and 3.7 percent next year, an acceleration from the 3.2 percent growth recorded in 2016.
Among the world’s 10 largest economies, the U.K. is the only one expected to see growth slow in both 2017 and 2018, weighed down by depreciation of the pound following the U.K.’s decision to exit from the European Union.
Despite this portrait of a widely improving global economy, the IMF kept its report focused on lingering risks.
The inflation outlook has softened since the spring. The IMF lowered inflation forecasts to 1.7 percent in advanced economies over the next two years, below the 2 percent rate most advanced countries target and below forecasts earlier this year. The report cautioned that wage growth is likely to remain weak around the world.
Economic growth in the euro zone was revised upwards from the July forecast by 0.2 percentage points for both 2017 and 2018 to 2.1 percent and 1.9 percent respectively, reflecting an export revival, stronger domestic demand due to accommodative financial conditions and a lowering of political risk.