“On a short term, we expect the consolidation of the positive climate in the sector of private consumption, an evolution backed by the positive climate on the workforce market, the signals in the revenue policy sector, the lowering of the standard VAT rate to 19% and the elimination of the additional fuel excise duty (as of January 1),” said Banca Transilvania chief economist Andrei Radulescu.
The positive perspectives of private consumption also reflect consumers’ improved confidence recently. Thus, in January, the European Commission’s indicator rose by 4,4 points on the month, to -13 points, the highest level since September 2008.
According to the latest macroeconomic scenario of Banca Transilvania, the annual dynamics of private consumption will see a slowdown from 7.6% in 2016 to 5% in 2017, 4.7% in 2018 and 4.4% in 2019, respectively.