Consumption will grow by 6-7% this year in Romania due to the increase in the household incomes and the VAT cut on food, said Bogdan Belciu, PwC Romania partner.

Consumption will grow next year too, due to the reduction in the general VAT rate starting January 1. However, imports will sustain the increased consumption, which could lead to an increase in the trade deficit.

The national currency could also depreciate.

Romania should carefully manage its economic growth to avoid macroeconomic imbalances similar to those recorded before the economic crisis in 2008-2009, the PwC partner added.

editor@romania-insider.com