The EBRD has worsened the estimates regarding the growth of the Romanian economy

The European Bank for Reconstruction and Development has worsened the estimates regarding the growth of the Romanian economy both for this year and for 2024.

For their part, economic analysts claim that the package of fiscal measures adopted by the Government will affect future economic growth.

According to the latest EBRD estimates, Romania's economy would grow by only 1.8% in 2023 and by 3.2% next year, compared to 2.5% and 3.5%, respectively, as forecast in May.

Financial analyst Adrian Codirlasu, vice-president of CFA Romania, says that we are facing a volatile environment, and the population and companies show caution in these conditions, caution reflected in the evolution of consumption, which no longer recorded the increases it had at the beginning of the year or in 2022.

Inflation is also still high and eating away at consumer incomes, while leading to high interest rates that make access to finance more difficult. And all these factors lead to a significant slowdown in the forecasted economic growth, especially for 2023.

Adrian Codirlasu: The economy is slowing down before this tax package. This package will further reduce the economic growth projection.

Reporter: In Adrian Codirlasu's opinion, the fiscal budget package adopted, through which the Government basically takes some more money, either from the population or from companies, will cause a further decrease in future economic growth.

Translated by: Radu Matei