Romania may continue a relaxed fiscal policy this year, which could have a negative impact on public finances and debt and a potential negative impact on the country’s rating, said Mathias Angonin, analyst at Moody's rating agency.

Romania could record a deficit of 3.4% of the GDP this year. However, he pointed out that the country's fiscal deficits have generally been lower than the ones forecasted by international financial institutions, reports local Agerpres.

“The deficit will hover around the Maastricht value of 3% of the GDP, benefiting from cooperation with supranational institutions, which should limit a further deterioration, but we expect the fiscal deficit to exceed this limit in 2017,” the Moody’s analyst added.

He also said that the outlook associated with Romania’s rating of Baa3 is positive, reflecting significant progress in correcting macroeconomic imbalances.

editor@romania-insider.com