IMF lowers forecast for Romania’s economic growth

The International Monetary Fund reduced its estimate regarding Romania’s economic growth in 2014 from 2.8 percent (June forecast) to 2.4 percent, according to the World Economic Outlook report published on Tuesday, writes Mediafax.

For next year, IMF maintained its 2.5 percent economic growth estimate.

Romania has slipped into its third recession since 2009, triggered by the rollout of new taxes and the slowdown of public and private investments, say economists.

Eurostat, the statistics office of the EU, announced last month that Romania’s economy had posted the steepest fall, namely 1 percent of GDP, in the second quarter against the first. Although the flash estimate for the first quarter indicated a 0.1 percent expansion of the economy, revised data showed that in fact the economy contracted in the first three months too, by 0.2 percent.

The International Monetary Fund slightly lowered its outlook for global economic growth this year and next, mostly because of weaker expansions in Japan, Latin America and Europe.

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The IMF said Tuesday the global economy will grow 3.3 percent this year, one-tenth of a point below what it forecast in July. World growth should then pick up to 3.8 percent in 2015, two-tenths of a point lower than its previous estimate, the IMF said in the latest installment of its World Economic Outlook.