Romania Economic Outlook
July 31, 2018Growth likely strengthened in Q2, following a sharp deceleration in Q1. Consumer spending appears to have regained some steam, benefiting from tight labor market conditions and wage gains, as retail sales were solid in April and May. Moreover, exports expanded at a solid pace in the same two months. However, data for the first five months of the year shows that the current account deficit widened significantly in annual terms. In addition, fiscal data for January-June continued to show a deterioration in the budget deficit, which does not bode well for the rebalancing of the economy. In early July, President Klaus Iohannis sacked the chief anti-corruption prosecutor following a constitutional court ruling saying he could not oppose a dismissal request by the justice minister. This is set to exacerbate the debate on the independence of the country’s judiciary between the government and EU institutions.
Romania Economic GrowthHigher inflation and a loss in consumer confidence should lead to a marked slowdown in consumer spending this year, denting GDP growth. Although the expansion in fixed investment should gain some strength, low EU funds absorption will limit the extent of the acceleration. Downside risks stem from widening fiscal and current account deficits. Met the why particular panelists expect growth of 4.1% for 2018, down 0.1 percentage points from last month’s forecast, 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||4.99||0.23 %||Aug 07|
|Exchange Rate||4.01||-0.34 %||Aug 07|
|Stock Market||8,190||-0.59 %||Aug 07|
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Romania Economic News
August 11, 2018
Industrial output expanded 4.6% in annual terms in June, a notable acceleration from May’s 1.2% growth rate.
August 11, 2018
Consumer prices decreased 0.5% over the previous month in July, following a flat reading in June.
August 6, 2018
At its monetary policy meeting on 6 August, the National Bank of Romania (NBR) decided to keep the policy rate unchanged at 2.50%.
July 12, 2018
Industrial output expanded a weak 1.2% in annual terms in May, decelerating from April’s 3.6% growth rate.
July 11, 2018
Consumer prices remained flat over the previous month in June, following a 0.5% rise in May.