IMF Cuts Romania Forecasts: Recession Expected, Recovery Slower

The IMF has sharply downgraded Romania's economic outlook, now projecting a recession this year and a weaker recovery in 2027 than previously expected, with tighter labor market conditions. This marks a significant reversal from earlier growth forecasts, signaling deteriorating macroeconomic fundamentals. The revision may pressure Romanian assets and the leu, and could complicate fiscal consolidation efforts.