Increases in public wages and planned changes to pension benefits should be reassessed for their negative implications for fiscal sustainability and long-term growth, the International Monetary Fund (IMF) said in a statement at the end of the visit to Bucharest, November 6 – 12, 2018, of an IMF staff team led by mission chief Jaewoo Lee, to discuss recent macroeconomic and policy developments. “Economic activity in Romania remains strong with unemployment at a record low. Concerns about overheating have lessened with a recent slowdown in activity and inflation pressures for the year appear to have peaked. The National Bank of Romania has tightened monetary policy and liquidity management, helping contain inflation pressures. Going forward, a tightening bias in monetary policy should be maintained to anchor inflation expectations and contain external risks. The financial system’s health has improved, and the cap on debt service to income on household loans should help maintain financial stability,” said Jaewoo Lee, as cited in the release. “Fiscal consolidation would enhance room for fiscal policy maneuver, thereby reducing the economy’s vulnerability to domestic and external shocks. Despite several years of strong growth, the budget deficit has gone up rather than down, as it should during good times, and the 2018 target remains at risk without further measures,” the release further reads. “Well-targeted structural reforms and strong governance are needed to raise growth potential,” concludes Jaewoo Lee.
The post IMF recommends Gov’t to reconsider public wage increases for negative implications on economic growth appeared first on Nine O' Clock.
Romanians are worse off now compared to 6 months ago, and 2026 will also be difficult, but from 2027 and then on, there is hope, said president Nicusor Dan during an interview with Romania TV. The government targets a deficit of 8.4% of GDP this year, marginally below 8.65% of GDP in 2024. To tackle […]
Imran Vilcassim, Chief Commercial Officer, Digital Platforms at BPC, explores how Romania’s booming digital payments outpace merchant readiness and why mobile POS is emerging as the practical solution. Romania’s digital payments volumes are rising fast, but merchant infrastructure isn’t keeping up. Independent market models estimate total digital payments will reach nearly
The attributes needed to reach the top of the business hierarchy, how to motivate and support the teams one works with, and how to tackle the unavoidable challenges that arise along the way were among the topics discussed at the event Inspiring Women in Business, organized by La French Tech Bucharest. Making it to a […]
More than half of the elderly people in urban areas in Romania face loneliness, and almost 310,000 of them experience it at a high level, according to a study conducted by the Association Never Alone, Friends of the Elderly, in partnership with Kantar Romania. The study, carried out in August 2025 on a representative sample […]
Square 7, part of retail park investor M Core, officially inaugurated its new Bucharest office last week, marking an important milestone for the company. More than 150 guests joined the event, including partners, collaborators, and team members. M Core is a family of property investment and management companies comprising LCP, Sheet Anchor, Proudreed, and Sheet […]
Real estate developer Hagag Europe Development has expanded its Romanian operations into the energy sector with the acquisition of BTD Distribuție și Furnizare, a local company specializing in natural gas infrastructure, distribution, and supply. The company has opened a new local division - Hagag Energy - and announced plans to invest more than EUR 400 […]
