Fitch: Romania’s economic growth will reach 5.1% this year

Romania’s economy will grow by 5.1% this year whereas the budget deficit will reach 3.7% of the GDP, according to the latest estimate of the US ratings agency Fitch. Fitch has improved its estimate on Romania’s economic growth from 4.8% in the previous report. By comparison, the Romanian Government expects the economic growth to reach 5.2% this year whereas the European Commission foresees a GDP growth of only 4.4% in 2017. Fitch foresees the deficit would go up as a consequence of the VAT reduction and the higher salaries and pensions. The structural deficit will reach 3.9% of the GDP in 2017, the account deficit will amount to 3.1% of GDP and the public debt will grow to 39.9% of GDP, up from 37.6% of GDP in 2016. The US ratings agency estimates that Romania’s economic growth in 2018 will amount only to 3.4% compared to an estimated growth of 5.5% presented by Romania’s National Prognosis Committee. Fitch Ratings confirmed the ratings for Romania’s long-term debt in foreign currency and local currency at "BBB minus" (investment grade), with a stable outlook. UniCredit Bank: Romania’s GDP growth will slow down to 4.4% editor@romania-insider.com