Romania's Prognosis Commission forecasts 5.5% growth for next year

Romania’s gross domestic product (GDP) will grow by 5.5% next year and reach RON 907.9 billion (close to EUR 200 billion at an exchange rate of RON 4.55 per EUR), according to new estimates by the National Prognosis Commission (CNP). This forecast is important because the Government will base its 2018 state budget on it. Romania’s budget revenues should reach RON 272 billion (EUR 59.8 billion) next year, considering that the budget revenues to GDP ratio has stayed around 30% in recent years. The budget expenses should thus stay under RON 300 billion (EUR 65.9 billion) to keep the budget deficit under 3% of the GDP, according to CNP data, cited by local Mediafax. Domestic consumption is expected to increase by 5.8% next year while the investments in the economy should increase by 7.9%. Construction, services and industry may be the economy’s growth engines in 2018. The figures show that the Government may increase its public investments next year. The number of employees in the local economy should go up by 4.2% to 5.13 million people and the net average monthly wage should increase by 11%, to RON 2.614 (EUR 575). Romania’s “blistering” growth story reaches New York Times front page editor@romania-insider.com