European Commission: Romania's economy to grow by 2.8%

The European Commission has slightly improved its estimates of Romania's economic growth for this year, to 2.8%. In February, it predicted a 2.7% advance. “Economic growth in Romania is expected to remain strong in 2015 and 2016, supported by solid private consumption and investment recovery. Inflation is expected to drop significantly in 2015 and remain at low levels, whereas fiscal consolidation might change in 2016", reads the EC report. The economic growth could go up to 3.3% in 2016. The unemployment rate will drop to 6.6% in 2015 and 6.4% in 2016. But, the government debt would increase to 10.1% of GDP this year. The budget deficit will reach 1.6% of GDP this year and 3.5% of GDP next year, following the adoption of the new Fiscal Code, warns the European Commission. By comparison, the European Union will record a 1.8% economic growth this year, compared to a 1.7% advance in 2014. editor@romania-insider.com