The European Commission has kept its economic growth forecast for Romania unchanged in its most recently published macroeconomic prognosis.

The EC believes Romania’s economy would grow by 4.5% in 2018, but it also warns the country could see its budget deficit hiking because of salaries rises in the public sector. For 2019, the EC revised the forecast downwards, from 4% to 3.9%.

It also expects inflation to continue to grow in Romania, after increasing at end-2017: 4.2% in 2018, then going down to 3.9% in 2019. The budget deficit would grow to 3.4% of the GDP, according to the EC report.

Prognosis: EUR 200 bln GDP threshold for Romania in 2018

editor@romania-insider.com