Romania's CFA economic confidence index recovers after presidential elections

Romania's economic sentiment rebounded sharply in May following the presidential election victory of pro-Western candidate Nicușor Dan, according to data published by the CFA Romania Society on June 19. The recovery comes after a significant decline in April amid fears of a potential win by isolationist candidate George Simion.

After the recovery in May, the investors' sentiment is now being tested by the authorities' attempt to form a majority coalition and a fiscal consolidation plan. The structure of the fiscal plan and the European Commission's decision on the continuation of transfers from the EU budget are the two key drivers that may significantly impact both the current conditions and the anticipation components.