wiiw Forecast Reports

ROMANIA: How much fiscal consolidation?


Gabor Hunya

in: Beneath the Veneer of Calm
wiiw Forecast Report No. Autumn 2023, October 2023 , pp. 112-115

Romania will suffer a significant economic growth slowdown to 2.5% in 2023, but – helped along by EU funds and a good harvest – its growth will still be above that of most of its peers. Inflation fell to single digits in August, but real incomes are proving slow to recover. The current account deficit has shrunk due to lower imports of goods and higher exports of services. High fiscal deficits jeopardise the country’s access to EU funds, but no harsh stabilisation measures will be necessary to keep most of the funds flowing. The rising political risks moderate our growth expectations for the election year of 2024.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Romania