OECD Recommendations

The OECD has issued an Economic Survey of Romania, which includes the organization’s recommendations

Daniela Budu, 13.03.2024, 13:50

The Organization for Economic Cooperation and Development systematically and rigorously supports Romania in developing a comprehensive agenda of reforms to ensure the economic and social well-being of the population, said the secretary general of the organization, Mathias Cormann. He attended on Tuesday, in Bucharest, the presentation of the OECD Economic Survey of Romania, which highlights the progress made by the country following the 2022 recommendations.

According to the document, the Romanian economy has demonstrated a real resilience in recent years, following major external shocks. Mathias Cormann gave as an example the fact that after the COVID-19 pandemic, Romania’s gross domestic product recovered strongly and increased by five percentage points. Moreover, in 2021, following the war started by Russia against neighboring Ukraine, considering the damage to the supply chain due to inflation, the Romanian economy grew by one percent in 2022 and by another two percent last year and stronger growth is expected in the next two years.

“Romania’s economy could grow by 3.1% this year and 3.3% next year. We expect improvements in the export market, which will produce good results for Romania as well. We expect further reductions in inflation to continue Romania’s convergence process, with a continuous increase in living standards and incomes throughout Romania” – said the OECD official. According to him, the country needs efforts, sustained reforms, and fiscal policy must support economic policies.

At the same time, Romania needs a clear medium-term fiscal consolidation plan. Also, the organization of the most developed countries in the world recommends to the authorities in Bucharest the introduction of a progressive taxation system, to reduce inequities, as well as restrict early retirements and increase the retirement age. “You are a beautiful country, on the right track to comply with the living standards of the OECD countries. We support you in your efforts to continue on the right path” – concluded Mathias Cormann.

During the event in Bucharest, Prime Minister Marcel Ciolacu argued that accession to the OECD was Romana’s main country project and explained that accession would mean more investments, an increased visibility of the country on the international economic map and a more efficient administration. He promised economic and social modernization of the country and voiced hope that it would join the 38 members that hold 70% of global production and trade and 90% of the world’s foreign direct investment. Currently, Romania is in the midst of the accession process, being evaluated by 26 sectoral committees of the organization according to the Roadmap that establishes the terms and conditions it must meet.