Moody’s estimates 6.5% economic growth for Romania in 2017

Romania will record an economic growth of 6.5% this year and 5% in 2018, according to estimates of the ratings agency Moody’s. Despite the premises for a robust economic growth, this is not sustainable. Romania will benefit from an improvement in the country rating, which is currently at Baa3 stable, if it balances the sources of economic growth, improves the operation of public institutions and reduces public and external debt. Macroeconomic policies have generated a rapid rise in wages, which pose a risk to economic competitiveness and amplify the current account deficit, said Daniela Re Fraschini, a Moody’s analyst and author of the country report on Romania. Romania has made progress in correcting macroeconomic imbalances, creating the premises for robust economic growth. However, these developments could be eroded in the medium term, according to Moody’s. The agency estimates that the budget deficit will remain at 3% of GDP this year, but will exceed 3% of GDP in 2018. Erste: Romania’s economic growth mainly supported by agriculture editor@romania-insider.com