International Monetary Fund in Romania for New Joint Projects

An International Monetary Fund (IMF) mission began in Bucharest, Romania’s capital, on Monday, January 29. It is supposed to analyze the current situation and prospects for the country’s economic and financial development. The mission, led by Jan Kees Martijn, will last until February 1 and has scheduled numerous meetings with Romanian government leaders, economic experts, and representatives of the Romanian business world. The previous IMF mission (autumn 2023) estimated that Romania should prepare for a budget deficit equal to 5% of GDP in 2024. At the same time, economic growth should not exceed 2.3%.

Romania does not currently have a valid agreement with the fund, but its representatives periodically go on missions to monitor the economic and financial situation in this country of the former socialist bloc. On the eve of the IMF mission’s arrival in Bucharest, Romanian Prime Minister Marcel Ciolacu said he was “optimistic” about the assessments and conclusions that the international experts would reach following the visit. He said the country “still has difficulties” in reaching the main stage of the National Recovery and Resilience Plan (NRRP), because the European Commission believes Romania “has too low a level of taxation on small and medium-sized enterprises.”

In early January, in Romania, as well as in Germany, France, and Poland, farmers took to the streets to protest against delayed subsidy payments, low grain prices, and unfair competition. After a series of spontaneous protests on January 10, farmers from several counties in Romania took to the streets in tractors, and some expressed their intention to reach Bucharest with heavy agricultural equipment.

Since joining the European Union in 2007, Romania has received €89.4 billion in European funds. According to Romanian Economy Minister Stefan Radu Oprea, “the difference between the amounts received and Romania’s contributions to the EU budget exceeded 60 billion euros.” The minister emphasized that “Romania’s economy and the living standards of the population have improved significantly since accession, thanks to the possibility of accessing European funds and the benefits of the common market.” Over the past 17 years, Romania’s nominal GDP has increased from €81.3 billion to more than €282 billion. Between 2007 and 2023, Romania recorded an economic growth of more than 3% per year on average, ranking second after Poland (3.83%) and even higher than the EU average (1.2%). During the same period, the minimum gross monthly wage increased from 78 euros (01.01.2007) to 663 euros on January 1, 2024. “In terms of economic growth, Romania has overtaken Greece, Hungary and is bringing us closer to Poland,” Oprea emphasized.