RRI Live!

Listen to Radio Romania International Live

Stable economic prospects

Stable economic prospects
Stable economic prospects

, 18.03.2019, 13:46

The Standard & Poor’s (S&P) financial
rating agency has reconfirmed the rating related to Romania’s government debt
to BBB-/A-3 for the long and short term debt in local and hard currency as well
as the stable outlook. Also S&P estimates that Romania’s economy will slow
down even more this year, to stand at 3.5%, due to a more reduced external
demand and a lower level of private investments. According to the agency, last
year the growth rate of the GDP dropped down to 4.1% from the very high level
of 7% reported in 2017, when the fiscal stimulation measures and the favourable
external environment prompted Romania’s economic boom. For the period
2020-2022, S&P expects a moderate growth towards a more sustainable level
of 3% annually. The future growth trajectory will depend on the progress made
in passing institutional reforms and on the rate of success of increased
domestic investments, for instance by means of boosting the absorption of
European funds, S&P also shows. In another move, S&P remarks an obvious
propensity for immigration among young people, among the educated labour force
as well as a gloomy prospect on the improvement of general life conditions. S&P
warns that if the authorities don’t take action to bring the people in the
Diaspora back home, they will not be able to ensure a more robust growth
trajectory for the economy and a sustainable way of managing the dynamics of
the population’s rapid aging.


The agency also draws attention to
the increasing fiscal pressure that will linger in the absence of corrective
measures. The current account deficit will probably grow at almost 5% of the
GDP, S&P writes. The national bank of Romania still enjoys a high
credibility rate and the awaited amendments to the new banking tax will probably
ensure the policies’ efficiency. S&P estimates that the general
governmental deficit will deepen, going up to 3.3% to 3.5% of the GDP in 2019
and 2020 respectively, as a result of a slowdown in economic growth and of
government expenses, and against the backdrop of preparations for the 2019
presidential election and the 2020 parliamentary elections. S&P’s decision
to maintain the stable outlook for Romania is a fair one, which acknowledges
and confirms the current economic realities of Romania, says Finance Minister
Eugen Teodorovici. According to the finance ministry officials, Romania’s
strengths underlying the S&P decision are the moderate level of public and
foreign debt and the effort to maintain the economic growth prospects. The 2019
budget law passed by the Romanian government and promulgated by president Klaus
Iohannis is based on an economic growth of 5.5%, a 2.7% deficit and a GDP of
almost 200 billion Euros.

Photo: pixabay.com
Today in the News Thursday, 24 April 2025

A new law on the magistrates’ pensions

There are several occupational categories in Romania whose employees are usually retiring under the age of 50 and whose pensions aren’t exclusively...

A new law on the magistrates’ pensions
Foto: Mediamodifier / pixabay.com
Today in the News Thursday, 24 April 2025

Downward forecast revision from the World Bank

According to its latest report, the World Bank expects growth in developing economies in Europe and Central Asia to slow down to 2.5% in 2025-2026...

Downward forecast revision from the World Bank
Photo: Septimiu / pixabay.com
Today in the News Wednesday, 23 April 2025

From budget deficit to governmental debt

  The Romanian finance ministry reiterates Romania’s commitment to meet the 7% of GDP deficit target at the end of the year, and promises...

From budget deficit to governmental debt
Ambasadorul Germaniei la București, Peer Gebauer, alături de ministrul de Externe, Emil Hurezeanu / Foto: MAE.ro
Today in the News Wednesday, 23 April 2025

Romanian – German Friendship Day

A year ago, former Romanian President Klaus Iohannis, himself an ethnic German from Transylvania, promulgated the Law establishing April 21 as...

Romanian – German Friendship Day
Today in the News Tuesday, 22 April 2025

Romania reacts to the Pope’s Death

Pope Francis passed away on Monday, the second day of Easter, after 12 years of pontificate, and the emotion caused by his disappearance crossed the...

Romania reacts to the Pope’s Death
Today in the News Thursday, 17 April 2025

Christians before Easter

The Orthodox Christians in Romania are preparing to celebrate Easter – the feast of light and joy, considered the greatest celebration of...

Christians before Easter
Today in the News Wednesday, 16 April 2025

Strategic partnership reaffirmed

  With a new administration led by the Republican Donald Trump that excels in unexpected moves, the United States has in Congress an institution...

Strategic partnership reaffirmed
Today in the News Wednesday, 16 April 2025

NATO continues to support Ukraine

NATO’s Secretary General visited Ukraine and the Republic of Moldova.   NATO Secretary General Mark Rutte on Tuesday made a surprise visit...

NATO continues to support Ukraine

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