Romania's public debt increased by RON 57.3 billion (EUR 11.8 bln) in the first half of the year, to RON 430.8 billion (EUR 88.98 bln), or 40.2% of the GDP, according to data published by the Finance Ministry.

The debt-to-GDP ratio, calculated under EU's methodology (based on the rolling GDP in the last four quarters), increased by five percentage points, from 35.2% at the end of 2019.

Thus, the public debt increased by RON 57.3 bln (EUR 11.8 bln), or just over 5% of GDP since the end of last year.

The budget deficit accounted for RON 45.1 bln (4.2% of the year's projected GDP) over the same period.

Romania's debt-to-GDP ratio neared 38% at the end of 2015 - three times more than before the 2008 recession, but eased to 34.7% at the end of 2018, helped by the robust rise in the nominal GDP.

Wider deficits and sluggish nominal GDP growth are likely to push up the ratio on the medium term, though. 

(Photo: Mattwatt/ Dreamstime)

editor@romania-insider.com