Romania's record 9.3%-of-GDP ESA public deficit in 2024 exceeds estimates by 1.4pp

Romania posted the widest general government budget deficit among the European Union member states, 9.3% of GDP (6.6% in 2023) – nearly three times the EU average (3.2%), according to data published by Eurostat. On the upside, the country's public indebtedness, although rising at a fast pace, remains well below the EU's average.

The gap is also well above the 7.9%-of-GDP estimated by the government last October as the starting point for the seven-year fiscal consolidation plan. At that time, the government estimated the cash deficit to be 8.0% of GDP, compared to 8.6% of GDP, which was estimated at the end of the year.

Romania's government expenditures-to-GDP ratio rose by 2.9 percentage points from 40.6% in 2023 to 43.5% in 2024, well below the EU average of 49.6%. Its revenues also lagged behind the 46.5% of GDP EU average, improving only marginally from 34.0% in 2023 to 34.1% in 2024.

In 2024, all Member States, except Denmark (+4.5%), Ireland and Cyprus (both +4.3%), Greece (+1.3%), Luxembourg (+1.0), and Portugal (+0.7%), reported a deficit. The highest deficits were recorded in Romania (‑9.3%), Poland (-6.6%), France (‑5.8%) and Slovakia (-5.3%). Twelve Member States had deficits equal to or higher than 3% of GDP.

When it comes to the public debt-to-GDP ratio, Romania stands out by a moderate level of 54.8% of GDP, compared to the EU's 81%-of-GDP average. The ratio, however, increased significantly from 48.9% in 2023.

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