The Commission also expects higher economic growth in 2024, 3%, compared with 2.2% last fall.
Average annual inflation is projected at 9.7% in 2023 before slowing down to 5.5% in 2024, below the previous forecasts of 10.2% and 6.8%.
The EC says that in the first three quarters of 2022, Romania’s annual real GDP grew by 4.3%, due to strong gross fixed capital formation and private consumption, which was supported by a strong labor market and wage growth, in combination with government support measures to mitigate the impact of high energy prices.
Under the circumstances, Romania’s economy is expected to have been resilient in the fourth quarter, on the back of favorable developments in the services sector and economic sentiment, and despite the further fall of production in manufacturing.
(English version by Loredana Fratila-Cristescu)