EC: Romania's public debt heads towards 73% of GDP within ten years

Romania's public debt will be near 73% of GDP within ten years, in 2032, under the baseline scenario, from just above 50% of GDP currently, according to the debt sustainability analysis carried out by the European Commission in the Semester Report on the country's economy.

"This debt trajectory is sensitive to possible shocks to fiscal, macroeconomic and financial indicators," the Commission warns, with simulations leading European experts to conclude that Romania faces significant risks to fiscal sustainability, especially in the long term. Medium.

"Overall, the high risks reflect very high deficits, growing public debt and high sensitivity to potential adverse shocks," said Commission economists.

"The large structural primary deficit of 2023, the growing public debt, its sensitivity to macro-fiscal shocks and the uncertainty surrounding the forecasts indicate substantial and moderate fiscal challenges in the medium and long term, respectively," the European Commission report said.

(Photo: Anyaberkut /Dreamstime)

iulian@romania-insider.com

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EC: Romania's public debt heads towards 73% of GDP within ten years

Romania's public debt will be near 73% of GDP within ten years, in 2032, under the baseline scenario, from just above 50% of GDP currently, according to the debt sustainability analysis carried out by the European Commission in the Semester Report on the country's economy.

"This debt trajectory is sensitive to possible shocks to fiscal, macroeconomic and financial indicators," the Commission warns, with simulations leading European experts to conclude that Romania faces significant risks to fiscal sustainability, especially in the long term. Medium.

"Overall, the high risks reflect very high deficits, growing public debt and high sensitivity to potential adverse shocks," said Commission economists.

"The large structural primary deficit of 2023, the growing public debt, its sensitivity to macro-fiscal shocks and the uncertainty surrounding the forecasts indicate substantial and moderate fiscal challenges in the medium and long term, respectively," the European Commission report said.

(Photo: Anyaberkut /Dreamstime)

iulian@romania-insider.com

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