Romania reported an economic growth
\nof 3.9% in 2019, compared to 4.4% in 2018, the European Commission winter
\neconomic forecast shows. Published on Thursday, the report reveals that
\nRomania’s economic growth will continue to ease in 2020 and 2021. Compared to
\nthe previous forecast published in November, the European Commission has
\nrevised slightly upwards its economic forecast for Romania, considering that
\nlast autumn the estimated economic growth for 2020 was 3.6% and 3.3% for 2021.
\nRight now, the Commission estimates a growth of 3.8% this year and 3.5% next
\nyear. Of the 27 Member States, only Malta will report an economic growth above
\nRomania. The Commission recalls that real GDP growth declined from a
\npost-crisis peak of 7.1%<\/p>\n
<\/p>\n
\n
<\/p>\n
in 2017 to 4.4% in 2018 and is
\nexpected to have moderated to 3.9% in 2019. Real GDP growth is forecast to
\nremain robust this year and the next, while the significant fiscal stimulus
\nplanned in 2020 and 2021 is expected to give a new boost to private consumption
\nwhile also stimulating imports, the Commission also says. Investment is
\nexpected to remain strong in 2020, supported by construction and greater use of
\nEU investment funds. The reversal in early 2020 of measures introduced in
\nDecember 2018 concerning the taxation of the banking and energy sectors is
\nexpected to favor private investment, the Commission further notes. At the same
\ntime, the European Commission estimates inflation to continue to shrink in
\nRomania, from an average of 3.9% in 2019 to 3.4% in 2020 and 3.3% in 2021. The
\nEuropean Commission warns that the fiscal policy stance will be a key
\ndeterminant of the evolution of economic growth in 2020 and 2021. A
\ncontinuation of expansionary fiscal policies aggravating existing macroeconomic
\nimbalances could affect investors’ confidence and lead to higher funding costs.
\nConversely, the start of much needed fiscal consolidation would contribute to the
\nunwinding of the accumulated imbalances but would also result in somewhat lower
\neconomic growth over the forecast horizon, the winter forecast for Romania also
\nreads. More legislative unpredictability or rapidly deteriorating fiscal
\ndeficit could also affect the business environment in Romania and have a
\ndetrimental effect on investment decisions. As regards the Eurozone and the
\nEuropean Union, the Commission announced Eurozone’s GDP growth is bound to
\nremain stable at 1.2%, both in 2020 and 2021. Over the same interval, the EU’s
\ngrowth is estimated to slow down slightly to 1.4%. <\/p>\n
\n
<\/p>\n
(Translated by V. Palcu)<\/p>\n
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Economic growth will continue to ease in 2020 and 2021, the European Commission estimates<\/p>\n","protected":false},"author":110,"featured_media":83931,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[31578,29053,32757,39885,39886,39884],"coauthors":[],"class_list":["post-84683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-economic-growth-forecast","tag-european-commission","tag-fiscal-measures","tag-fiscal-stimuli","tag-private-consumption","tag-real-gdp-growth"],"acf":[],"yoast_head":"\n