27 July 2004-- The International Monetary Fund (IMF) says Romania should keep tight control of public spending.
The IMF said in Washington today that Romania should curb further growth of its large current account deficit. Romania's economy has experienced growth of around 5 percent or better since 2001. But the IMF said output has failed to keep up with strong domestic demand for goods and services over the past 18 months.
The IMF said that as a result, the current account - a broad measure of trade - has widened to levels most economists say is unsustainable, particularly for a developing country.