For 2016, European Commission forecast a 4.9% economic growth in Romania. The country’s statistics institute INS will publish Tuesday a flash estimate on the 2016 GDP growth.
In 2017, the general government headline deficit is projected to deteriorate further, to 3.6% of GDP, while the government forecast a deficit below 3% of the GDP.
Romania’s structural deficit is forecast to increase to around 4% in 2017 and 2018.
According to EC, the economy will grow mainly due to private consumption, which is seen up 6.7%, versus the government’s estimations of 7.2%. Consumption will contribute 6.3% to the economic growth in 2017.
Annual average inflation is forecast to turn positive in 2017 to 1.6% and increase further to 2.9% in 2018, while the unemployment rate is projected to decline to 5.7% in 2017, from 6% in 2016.
According to the European Commission, the European economic recovery is expected to continue this year and next year.
“For the first time in almost a decade, the economies of all EU Member States are expected to grow throughout the entire forecasting period (2016, 2017 and 2018). However, the outlook is surrounded by higher-than-usual uncertainty,” EC said.
The European Commission expects euro area GDP growth of 1.6% in 2017 and 1.8% in 2018, slightly revised up from the autumn forecast.