Romania’s public debt-to-GDP ratio up 0.5pp in July to 48.8%

Romania’s public debt rose by RON 6.56 bln (EUR 1.3 bln) in July to RON 628 bln (EUR 127.3 bln), compared to RON 577 bln (EUR 116.6 bln) at the end of 2021, according to data published by the Finance Ministry.

The debt-to-GDP ratio edged up from 48.3% at the end of June to 48.8% at the end of July. At the end of 2021, the ratio was 48.8%.

Romania’s public debt rose by EUR 26 bln in 2020, driven by massive borrowing to finance Covid-19-related expenses, and by another EUR 15.6 bln in 2021. This year, the public debt already increased by more than EUR 10 bln in the first seven months.

However, the debt-to-GDP ratio tends to be diluted by the high inflation in the country and the euro area as well.

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