This year, Romania's economic growth will be much lower than expected, says EC
Articol de Bogdan Isopescu, 15 Noiembrie 2024, 18:39
The European Commission expects Romania to end the year with much lower economic growth than forecast in the spring. While May's forecast was for a 3.3% increase, the new forecasts, released in Brussels on Friday (November 15), point to growth of just 1.4%.
At the same time, the commission warns that the budget deficit will climb to 8% of gross domestic product by the end of the year, more than one percentage point higher than forecast in the spring.
There are also some areas where Romania is outperforming other EU countries.
In terms of investment we rank third in the Union for 2024, second in 2025 and first in 2026. We also have a better unemployment rate than the European Union as a whole and we are also doing better in the employment rate.
However, inflation, the budget deficit, the current account deficit and the fiscal balance partly cancel out much of the potential for economic growth, says the commission. So we have the highest inflation in 2024, second place in 2025 and negative champions again in 2026.
We have a disadvantageous gap between imports and exports, which shows a balance that puts us in negative second place in the Union in all three years. And last but not least, a fiscal balance, i.e. the difference between revenue collection and expenditure, which again puts us in negative first place in all three years.
Moreover, the Commission points out, the government's plan to reduce budget imbalances, a plan submitted on October 25, is so unclear or unconvincing that it could not be taken into account for the current forecasts.
Translated by: Radu Matei
