RRI Live!

Listen to Radio Romania International Live

Positive forecasts for Romania

In its spring 2014 European Economic Forecast, the European Commission expects a 2.5% growth rate for the Romanian economy this year.

Positive forecasts for Romania
Positive forecasts for Romania

, 06.05.2014, 13:40


Having felt the full impact of the world economic crisis, the Romania is showing timid signs of recovery. Its predicted 2.5% economic growth rate in 2014, while lower than last year’s 3.5% rate, which was the highest growth rate in the European Union, is viewed by analysts as a decent one. In 2015, the European Commission expects a 2.6% growth rate.



In its chapter on Romania, the Commission’s report says that structural reforms, such as the liberalisation of the energy markets and the new Labour Code, are starting to bear fruit. Domestic demand is expected to overtake net exports as the main driving engine of growth, while private consumption is expected to pick up as consumer confidence improves. Investment is also projected to gain momentum, supported by a higher absorption rate of European funds and the development of major infrastructure projects.



Other macro-economic indicators, such as inflation, unemployment, the budget deficit and the public debt, also point to a good performance. The inflation rate is expected to reach 2.4% in 2014 and 3.3% in 2015. The unemployment rate is projected to go down slowly this year to 7.2%. The budget deficit is forecast at 2%, while the public debt will remain stable at around 40% of the GDP, one of the lowest values in Europe.



In Romania’s case, the European Commission’s predictions take into account the indexation of pensions and the increase in public sector wages. The main risks to budgetary projections for 2014 and 2015 are mainly related to the spending control around elections and tax collection.



While some of the figures may at first sight appear comforting, the European Commission recommends to the authorities in Bucharest to go ahead with fiscal adjustment and structural reforms.



On the other hand, the forecast for Romania is much more positive than the figures across the European Union, which point to a 1.6% economic growth rate and an almost 11% unemployment rate.


Roxana Mînzatu (photo: gov.ro)
Today in the News Wednesday, 13 November 2024

 Roxana Mînzatu, heard by MEPs   

European MPs heard Roxana Mînzatu, Romania’s candidate for Vice-President for the People, Skills and Preparedness portfolio.   ʺIt was...

 Roxana Mînzatu, heard by MEPs   
Gen. Gheorghita Vlad Photo: facebook.com/sef.smap
Today in the News Wednesday, 13 November 2024

Peace, no longer a certainty in Europe

    Less than 2 weeks from now, Romania will hold the first round of its presidential election, and the campaign remains low-key, limited...

Peace, no longer a certainty in Europe
EP and local elections in Romania on June 9 (Photo credits: AEP)
Today in the News Tuesday, 12 November 2024

Preparations for the elections abroad

  After the local and European parliamentary elections, held simultaneously on June 9, Romanians are preparing for an election marathon. They will...

Preparations for the elections abroad
Photo: kschneider2991 / pixabay.com
Today in the News Tuesday, 12 November 2024

Growing trade deficit

The trade balance deficit recorded in Romania in the first nine months of the current year increased by 15%, as compared to the same period of 2023,...

Growing trade deficit
Today in the News Monday, 11 November 2024

Central Bank Report on Inflation

The latest report on inflation was approved at the end of last week by the Board of Directors of the National Bank of Romania. According to the...

Central Bank Report on Inflation
Today in the News Friday, 08 November 2024

EPC meeting in Budapest

European leaders met in Budapest to discuss security challenges facing Europe, with an emphasis on the situation in Ukraine, as well as the issues of...

EPC meeting in Budapest
Today in the News Friday, 08 November 2024

Romania, from wages to youth unemployment

Data from the Statistical Office of the European Union – Eurostat show that the adjusted average annual full-time salary of Romanians is the fourth...

Romania, from wages to youth unemployment
Today in the News Thursday, 07 November 2024

Reactions to the election of Donald Trump

Many political leaders around the world have reacted by congratulating the Republican Donald Trump, who announced his victory in the US presidential...

Reactions to the election of Donald Trump

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company