Romania's economy is expected to grow by just 0.4 percent this year, compared to the 1.3 percent forecast in June, according to the latest World Bank economic analysis for Europe and Central Asia, titled "Jobs and Prosperity," published by the international financial institution on Tuesday.
Furthermore, Romania's GDP growth in both 2026 and 2027 is projected to be 0.6 percentage points lower than previously estimated in June, at 1.3 percent and 1.9 percent, respectively.
According to the international financial institution, consumer spending in Romania is expected to slow to around 1.1 percent this year, down from an average of 5 percent over the 2000-2024 period, as fiscal consolidation weighs on expenditure and inflation remains high.
The World Bank mentions that retail sales volume grew only 3.1 percent between January and July this year, compared to nearly 9 percent in 2024, and new car registrations in Romania dropped 22 percent in the first half of the year.
Moreover, the World Bank mentions, Romania, with a fiscal deficit exceeding 9 percent of GDP last year, has introduced a fiscal consolidation
package combining spending measures, such as public wage and pension freezes, with higher taxes. The fiscal deficit in Romania is expected to decline to below 6 percent of GDP by 2026.
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