Just like most European Union Member
\nStates, Romania has reported a significant economic growth for 2017 and is
\nanticipating similar results for 2018. Our country has all the more reason to
\nfeel proud, as there is a wide percentage gap separating it from the other
\nMember States. Take France, for instance, whose GDP last year hit its highest
\nlevel in the last six years, standing at merely 1.9%. Romania on the other hand
\nhad a 6% growth rate, which made France Press news agency label it as Europe’s
\ntiger. <\/p>\n
<\/p>\n
On Sunday, the National Forecast Commission made public its
\npredictions for 2018, upgrading to 6.1% its GDP growth forecast. At the same
\ntime the Commission maintained its forecast for 2019 and 2020 at 5.7% and at 5%
\nfor 2021. Although positive, the forecasts of Romania’s external partners are
\nless optimistic. The European Commission expects Romania’s economic growth to
\nstand at 4.4% in 2018, which mirrors the latest forecast of the International
\nMonetary Fund. The World Bank estimates a 4.5% GDP growth rate, whereas the
\nEuropean Bank for Reconstruction and Development estimates a growth rate of
\n4.2%. <\/p>\n
<\/p>\n
Yet what makes Romanian economy so competitive? What is the secret behind
\nthis success, in a country facing severe labour shortage, rising migration and
\nwaning demographics? While the repeated Governments of the ruling coalition in
\nRomania, made up of the Social-Democratic Party and the Alliance of Liberals
\nand Democrats, have taken credit for Romania’s bolstering growth in 2017,
\nRomanian citizens themselves are more likely to have contributed to this
\nphenomenon, by increasing consumption. <\/p>\n
<\/p>\n
Both economic pundits and Central Bank
\nexperts agree that Romania’s growth rate is likely to slow down in 2018,
\nevidence of which can be found in the latest forecasts by international
\nfinancial institutions. It’s unlikely, experts argue, that the authorities will
\nbe able to uphold the current growth parameters, given that this was the effect
\nof salary increases. In a recent report, a commercial bank in Romania points
\nout that the recent fiscal uncertainty and populist measures have kept
\ninvestments away. <\/p>\n
<\/p>\n
Moreover, should the Government resort to additional tax
\nincreases and cuts in public spending so as to observe the 3% budget deficit
\ntarget, this might further slow down economic growth. As for the industrial
\noutput, it is expected to go up due to the rising demand on European markets.
\nStill, imports are expected to rise faster than exports, as they cover a large
\npart of the domestic demand. Therefore the coming years might prove relatively
\ndifficult for the Romanian economy, and the tiger might turn out to be yet
\nanother bubble.<\/p>\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The National Forecast Commission has upgraded the GDP growth forecast for Romania to 6.1%<\/p>\n","protected":false},"author":109,"featured_media":65133,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29053,39194,30149,32833,29022],"coauthors":[],"class_list":["post-63847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-european-commission","tag-national-forecast-commission","tag-romanias-gdp","tag-the-imf","tag-world-bank"],"acf":[],"yoast_head":"\n