Romanian PM sets ambitious yet unrealistic GDP growth target

Romanian prime minister Ludovic Orban announced on Thursday, June 11, that his goal is bringing Romania's GDP per capita above the EU average within five years.

It is a bold claim by any standard, if not unrealistic. In 2018, the GDP per capita in Romania was 65% of the EU average, up 2pp from the previous year.

Over the next two years, Romania should launch most of the projects needed for the economic development of such magnitude, PM Orban stated.

"My goal is that, in maximum five years, Romania will exceed the average GDP per capita at European level and, obviously, the average income," PM Orban said at an online conference organized by the National Council of Small and Medium Private Enterprises (CNIPMMR), Agerpres reported. He added that this increase would be based on "very solid pillars" and not on "artificial" consumption growth.

PM Orban's high target reminds of that voiced by the Law and Justice ruling party leader in Poland, Jaroslaw Kaczynski, who earlier this year has claimed that Poland's economy would catch up with Germany's by 2040. Kaczynski claimed that by 2033 Poland would reach the average GDP per capita in EU and, in 2040, catch up with Germany.

In 2018, Poland's GDP per capita was 70% of the EU average - a significant 5pp above Romania's.

(Photo source: Gov.ro)