Domestic consumption, main engine for Romania’s economy

Romania’s domestic consumption could grow this year by 4%, following the 5% growth from last year, and will be the main driver for the country’s economic growth, according to the EY Eurozone Forecast. The 6% increase in the salaries, combined with a low inflation strengthened the Romanians’ purchasing power and boosted consumption. Romania’s economy increased by 4.2% in the first quarter of 2015, and though it is unlikely to sustain this rate throughout the whole year, the economic prognosis for 2015 is optimistic, according to the EY’s barometer. EY estimates that the Romanian economy will grow by 3.1% this year and by 3.2% in 2016. “Consumption is now the primary growth vector in Romania, after a long stagnation period that followed the global economic crisis, when consumption dropped by 10% in Romania,” said Bogdan Ion, Country Managing Partner for EY Romania. editor@romania-insider.com