Erste Group warns of economy overheating risks in Romania

Austrian Erste Group, the owner of Romanian lender BCR, has revised upwards its estimation on private consumption growth in Romania in 2016 by 1.1 percentage point (pp) to 4.5%, as an effect of the new Fiscal Code measures. The group has warned that one of the risks generated by the Code’s implementation is the local economy’s overheating. The private consumption will go up by 4.6% in 2017, by 4.4% in 2018 and by 4.2% in 2019, following the fiscal policy relaxation. The Austrian group’s baseline scenario on private consumption growth in Romania estimated a 3.7% increase for this year, a 3.6% growth in 2016, a 3.5% increase in 2017, 3.4% in 2018 and 2019. Domestic consumption, main engine for Romania’s economy Romanian President, central bank governor oppose PM’s Fiscal Code editor@romania-insider.com