Romania’s economy will see a growth of 4.2% this year supported by a strong internal demand, the European Commission estimates in its latest economic forecast.

The growth pace will slow down to 3.7% next year, according to the EC. The figures are identical to the ones included in the Commission’s winter forecast.

The giving in payment law, which was recently promulgated by President Klaus Iohannis, could have a negative impact on the lending evolution and the investors’ trust, according to the EC report. The minimum wage increase may also negatively impact Romania’s competitiveness and new job creation, despite positive effects on domestic consumption, the EC also notes.

The inflation will remain negative until mid-2016. It will return to a positive territory in the second half of the year.

editor@romania-insider.com