14.3 C
September 20, 2019

EBRD improves estimates on Romania’s economic growth to 4.6pct in 2018

Romania’s economy might register this year an increase of 4.6 percent, but a slightly economic slowdown of 4.2 percent might be recorded next year, according to the latest prognosis released on Wednesday by the European Bank for Reconstruction and Development (EBRD).

Compared to the previous forecast of November 2017, the EBRD improved its estimations regarding the development of the Romanian economy by 0.4 percentage points this year, from 4.2 percent up to 4.6 percent.

The EBRD underscored that Romania’s economic growth would gradually shrink from a level close to 7 percent in 2017, when the expansionary fiscal policy and wage growth were boosted. Currently a return to more sustainable levels is foreseen, namely 4.6 percent in 2018 and 4.2 percent in 2019.

The World Bank (WB) announced on Tuesday that Romania is to record an advance of 5.1 percent in 2018, but warned that this growth is beyond the potential. An economic growth of 5 percent is also envisaged by the International Monetary Fund (IMF).

The National Prognosis Commission estimates a 6.1 percent increase of the Gross Domestic Product (GDP).

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