The European Commission revised up by one percentage point to 5.2% its estimate on the growth of the Romanian economy this year.

The advance would slow down to 3.9% next year and would reach 3.6% in 2018, according to the EC’s autumn economic forecast, which was published on November 9.

In the spring forecast, the EC estimated that the Romanian economy would grow by 4.2% this year and by 3.7% next year.

“The real GDP growth is currently one of the highest in the EU and is expected to remain robust in the coming years, supported by fiscal easing and wage increases,” according to the EC.

The EC forecast also shows that the inflation is expected to rise as the effects of the previous tax cuts will disappear. The budget deficit is estimated to grow considerably due to tax cuts and wage increases in the public sector.

editor@romania-insider.com