The assessment by financial rating agency Moody's confirms that Romania has a stable economy and a development level that secure it a competitive position in the region, amid ongoing measures to reduce the budget deficit and support investment, Finance Minister Alexandru Nazare said.
"Moody's assessment confirms that Romania has a stable economy and a development level that confer us a competitive position in the region. The assessment comes at an important moment, shortly ahead of the adoption of the state budget, which must be finalised as quickly as possible in a responsible and correct form, to ensure both fiscal discipline and the economic recovery package. We adopted firm measures in 2025 to correct budget imbalances, and the results are already visible in the gradual reduction of the deficit. This is increasingly strengthening the confidence of investors and rating agencies, and our commitment remains unchanged: fiscal and budgetary discipline and responsibility, and an economic policy focused on investment, mainly through accelerating the absorption of EU funds and measures to support the business environment," Minister Alexandru Nazare said in a statement on Friday.
According to him, Moody's Ratings has completed its periodic review of Romania's credit profile, reaffirming the country's solid medium-term growth potential and its resilience to external shocks.
The conclusions validate the direction of the fiscal consolidation measures launched in 2025 and underline the importance of maintaining budgetary discipline to ensure a sustainable path for public debt.
Moody's confirms that the fiscal measures adopted since July 2025 have had a positive impact on Romania's budget outlook. As a result, the budget deficit is on a clearly downward trend: from a peak of 9.3% of GDP (ESA terms) in 2024, the agency estimates a reduction to 8.2% in 2025 and to 6.3% of GDP by the end of 2026.
Although the government debt is projected to reach 62.9% of GDP in 2027 and stabilize at around 65%, Moody's considers that Romania retains a robust debt-servicing capacity. However, the agency notes potential risks to further reducing the deficit beyond 2026 and to stabilising the debt burden at a level consistent with the Baa3 rating, the agency's statement adds.
The Finance Ministry reiterates that attracting EU funds remains the top priority. According to Moody's, absorbing money from the Recovery and Resilience Facility (RRF) by August 2026 is the key factor in avoiding an economic contraction this year.
The report notes that the current government has significantly accelerated the process, despite implementation delays starting in 2024. In this context, the agency estimates that Romania can access most of the remaining funding by the end of 2026, thereby supporting public investment and structural reforms, the Ministry said.
According to the report, Romania's rating outlook could return to stable if the consolidation program adopted in 2025 is fully and effectively implemented, and if the process continues after 2027, even at a more moderate pace.
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