Romania: Selected Issues

International Monetary Fund

No 2015/080, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; Romania; exchange rate; export; exchange rate pass-through; tax wedge; PPI inflation; targeting CEE; quality investment; Exchange rates; Labor taxes; Public investment and public-private partnerships (PPP); Public investment spending; Global; Eastern Europe; Southern Europe; Central Asia (search for similar items in EconPapers)
Pages: 99
Date: 2015-03-27
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Citations: View citations in EconPapers (1)

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