wiiw Forecast Reports
ROMANIA: New government to initiate fiscal consolidation
in: Braced for Fallout from Global Slowdown
wiiw Forecast Report No. Autumn 2019, November 2019 , pp. 101-104
Economic growth is even stronger than last year, and could reach 4.2% in 2019, driven by household consumption and investment. Monetary and fiscal policy remains loose. Expanding deficits can be easily financed due to abundant international liquidity, albeit at a relatively high cost, constituting a burden for the future. Weaker external demand is already feeding through to industrial production, and will act as a barrier to growth in the future. We expect the interim government to take steps to curtail the fiscal deficit in 2020.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Romania