Romania Economic Outlook
May 8, 2018In the first quarter growth likely moderated further but remained solid, according to available data. Softer growth in retail sales suggests consumer spending lost some steam. Although supported by a strong labor market and rapidly rising wages, consumer spending was restrained by soaring inflation stemming from an overheating economy. Industrial production also moderated, reinforcing evidence that growth is easing from last year’s blistering pace. In mid-April, President Klaus Iohannis refused to comply with the interior minister’s request to fire the head of the country’s anti-corruption agency. Moreover, in late April Iohannis asked Prime Minister Viorica Dancila to step down due to foreign policy disagreements; she refused. Compounding political tensions, in early May the president announced he will not approve a controversial judicial reform sponsored by the government, a source of protracted friction between Romania and the EU. If political tensions persist, they could hit investor confidence.
Romania Economic GrowthThis year growth should remain strong but moderate, held back by growing capacity constraints. Consumer spending will remain the main driver of growth, although it will be weighed down by rising inflation, while a pick-up in EU-backed investment projects will underpin fixed investment. However, a widening budget deficit due to an expansionary fiscal stance and a large current account deficit pose the main risks to economic stability. Met the why particular panelists expect growth of 4.6% for 2018, up 0.1 percentage points from last month, and 3.6% in 2019.
Romania Economy Data
5 years of Romania economic forecasts for more than 30 economic indicators.
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|Bond Yield||4.92||0.23 %||May 21|
|Exchange Rate||3.94||-0.34 %||May 21|
|Stock Market||8,261||-0.59 %||May 21|
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Romania Economic News
May 15, 2018
In the first quarter, the economy expanded 4.0% over the same period last year, according to a preliminary estimate released by the National Institute of Statistics on 15 May.
May 14, 2018
Consumer prices jumped 0.5% in April over the previous month, above March’s 0.3% rise.
May 11, 2018
Industrial output expanded a meagre 1.2% in annual terms in March, strongly down from February’s 5.8% growth rate and the lowest reading in almost one year.
May 7, 2018
At its monetary policy meeting on 7 May, the National Bank of Romania (NBR) decided to raise the policy rate to 2.50% from 2.25%, as largely expected by market analysts.
April 12, 2018
Industrial output expanded 5.8% in annual terms in February, down from January’s robust 8.5% growth rate.