However, the convergence toward the EU average would continue in the medium term, as Romania’s GDP continues to grow at a faster pace compared with the EU, Banca Transilvania analysts said in a presentation on challenges for the country at the end of the post-crisis cycle.
Romania’s GDP increased by an annual 4.1% in 2018, slowing down from 7% growth in 2017, due to deceleration of domestic demand and deterioration of net foreign demand, the bank said.
GDP expanded by 4.7% year-on-year during January-June 2019, driven mainly by domestic demand and supported by the expansionary policy mix.
The main risks to Romania’s economic growth are related to the global and European macro-financial climate, with impact for the capital flows directed to the emerging markets, the economic policy mix and the public tensions in the country as well as the regional geopolitical climate.
The bank analysts also noted that the main strategic investors are expected to consolidate their presence in Romania, while the levels of the deficits and the dependence on foreign financing are low compared to the pre-crisis period.
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