Romania’s public debt-to-GDP up 0.5pp in November to 48.7%

Romania’s gross public debt under EU methodology has increased by RON 5.5 bln (EUR 1.1 bln) in November to RON 557.9 bln (EUR 112.7 bln) at the end of the month, the Ministry of Finance announced.

During the first eleven months of the year, the Government’s debt has increased by RON 58 bln, or EUR 10.1 bln, including the exchange rate effects.

The debt-to-GDP ratio increased from 47.4% at the end of 2020 to 48.2 at the end of October and 48.7% at the end of November.

In 2021, the public indebtedness advanced at a high rate compared to the pre-crisis period (when the debt-to-FDP ratio was slightly declining) but visibly less compared to the first pandemic year.

In 2020, the public debt soared by EUR 24.5 bln and the debt-to-GDP ratio rose by 12pp.

As regards the 2022 outlook, the fiscal consolidation might suggest an even slower rise in public indebtedness.

However, the Government started the year 2022 with its buffer compressed and replenishing it would keep the debt-to-GDP ratio on the rise.

Under its Autumn Forecast, the European Commission projects the public debt-to-GDP ratio to rise moderately to 53.2% at the end of 2023, from 47.3% at the end of 2020 and an estimated 49.3% at the end of 2021.

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