The Mission’s final statement on the visit announced preliminary conclusions and recommendations. They may serve as a basis for negotiations on the next program of cooperation with the country, if the Fund receives a corresponding request.
At the closing meeting, Prime Minister Alexandru Munteanu thanked for the recommendations received and reiterated the commitment to strengthen cooperation with the IMF, emphasizing that the support of external partners is important for the country.
“Our priority is to maintain budgetary and fiscal discipline and support citizens through targeted and effective measures. At the same time, we want to carry out a transition from an economic activity based mainly on consumption to an economy backed by investments and production,” the prime minister said, confirming that the IMF recommendations were heard by the government.
In general, the IMF sees positive trends, but emphasizes the need for structural reforms. There is progress – economic activity is growing, inflation is decreasing. However, there are risks due to external imbalances and uncertainty, said the head of the Mission, Alina Iancu. She called for better management of public finances and mobilization of revenues for ambitious expenditures, especially capital expenditures, which the authorities have planned for next year. In 2025, the IMF expects GDP growth of 2.7% (2.3% in 2026).
Revising the tax incentive system, especially the way VAT is collected, broadening the tax base and targeted social assistance should be the cornerstone. Along with maintaining macroeconomic parameters, to improve risk management. Otherwise, support for the country’s creditworthiness could be called into question.
“It is not about the quantity of money, but about its quality, the ability to ensure government spending!”, – noted Alina Iancu. State financing of capital expenditures next year will create a tangible pressure on the budget, provoking a significant increase in the deficit.
In this sense, fiscal policy, careful expenditure planning and prudent monetary policy can improve the quality of spending, the head of the Mission said. The IMF forecasts an increase in the deficit from 4.1% of GDP to 4.5% of GDP in 2025.
The IMF believes that only renewed reforms in public financial management, tax policy and prudent monetary and financial policies can be decisive in mobilizing domestic revenues and business activity.
