wiiw Forecast Reports
ROMANIA: Moderate growth despite loose fiscal policy
publication_icon
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. 109-112
While high fiscal and current account deficits are lasting features of the Romanian economy, they do not pose any imminent danger. Fiscal austerity will not be implemented in the current election year. Economic growth will be about 3% in 2024, fuelled by bullish household demand but hampered by sluggish foreign demand and the slow arrival of EU funds. Fiscal consolidation will dampen growth in 2025, while external demand and private investment will boost it to 3.3% in 2025 and further to 3.8% in 2026.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Romania