Romanian finance minister Florin Citu said on Wednesday, July 8, that he sticks with the scenario of a moderate economic decline of only 2% this year.

He also said that he expects the European Commission to revise its projection, which currently indicates a 6% GDP contraction for Romania's GDP, according to the Summer Forecast issued on July 7.

Citu pointed out that the EC maintained the forecast for Romania (although at minus 6%) as it negatively revised the forecast for the whole European economy (from -7.4% to -8.3%).

"We see that in almost all countries these figures have worsened compared to the spring estimates, in some states by almost one percentage point or more. […] We need to look at this estimate in the European context. I remain of the opinion that it is too pessimistic an estimate compared to what is happening in Romania today," Citu said, quoted by Profit.ro.

He also mentioned, as a positive development, the confidence demonstrated by foreign investors that placed offers of over USD 7 billion for 10-year and 30-year Eurobonds launched by the Government on July 7.

He claimed that the financing cost was "cheaper than during the global economic growth period."

He said that the successful Eurobond issue, as well as the outcome in the previous Eurobond offer launched in May (EUR 3.3 billion), show the confidence private foreign investors have in Romania's economy.

(Photo: Ilona Andrei/ Inquam Photos)

editor@romania-insider.com