Romania: Selected Issues

International Monetary Fund. European Dept.

doi:10.5089/9781475553116.002.A004

Romania : Selected Issues

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Volume/Issue:: 2015/80
Series:: IMF Staff Country Reports
Author(s):: International Monetary Fund. European Dept.
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: March 2015
DOI:: http://dx.doi.org/10.5089/9781475553116.002
ISBN:: 9781475553116
ISSN:: 1934-7685
Page:: 99

This Selected Issues paper discusses benefits of boosting quality public infrastructure spending in Romania. Since the financial crisis, fiscal and current account deficits have been tackled, but the infrastructure deficit has widened. Quality public investment in infrastructure can boost domestic demand and potential GDP growth, particularly in low growth environments. The IMF staff simulations employing the European Union's production function methodology show significant growth benefits from higher quality infrastructure spending. As a result of higher investment, real GDP would increase by about 1 percent initially with the impact peaking in 2025.

Romania - Selected Issues

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Romania: Selected Issues

Author(s):: International Monetary Fund. European Dept.
Published Date:: March 2015

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Romania : Selected Issues

Romania: Selected Issues

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