IMF Staff Country Reports

Romania: Selected Issues

Publication Date:

May 11, 2016

Electronic Access:

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Summary:

This paper discusses the following important issues related to the Romanian economy: inflation and inflation expectations, the need to bolster expenditure efficiency, minimum wage policy, and financial sector development. Headline inflation has decreased markedly in Romania in recent years. Key factors in this trend were oil and food price developments and, in particular, the recent reduction in the VAT rate. Romania has undertaken a strong fiscal consolidation since 2010, which reduced expenditure to among the lowest in the region. Minimum wages in Romania have risen sharply, which could directly affect wage distribution and improve income inequality.

Series:

Country Report No. 2016/114

Subject:

Credit Inflation Labor Minimum wages Money Prices Wage adjustments Wages