Romania’s public debt to GDP ratio drops to 35.1% at end-2018

Romania’s public debt increased by 9.6% in 2018 to RON 330.1 billion (EUR 70.8 billion) at the end of 2018. In absolute terms, the total public debt increased by RON 29.0 billion, or some EUR 6.2 billion (3.2% of GDP).

However, due to the 9.8% increase in the nominal GDP, the public debt to GDP ratio edged down marginally from 35.2% at the end of 2017 to 35.1% one year later. Country’s public indebtedness thus declined for the fourth year in a row, after it had soared threefold from 2008, before the recession, to 40% in 2011.

As regards the source of the public debt, the domestic public debt (in local or foreign currency) accounted for 53% of the total at the end of 2018, after having increased from 48% four years earlier.

(Photo source: Pexels.com)