Local lender Banca Transilvania (BT) estimates that Romania will record an economic increase of 5% this year, significantly above the estimates of international institutions, according to Romania-Insider.com.
The budget deficit will amount to only 2.3% of the GDP, below the level included in the state budget project, of 2.95% of the GDP, according to BT.
The Government, the European Commission, and the International Monetary Fund expect an economic increase of 4.2% for Romania in 2016.
However, this year’s economic growth could represent a peak of the post-crisis economic cycle if the structural reforms fail to intensify, reads the BT report. The GDP growth will decelerate to 4.6% in 2017, respectively 4.1% in 2018, according to the lender’s estimates. The growth would temper down due to the waning of the tax-budget stimulation measures and the perspectives of a new monetary cycle.
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