“Despite a weaker growth context, we believe Romania’ central bank will continue to raise its benchmark interest rate up to 4% in 2022. We think it is worth mentioning that in nominal terms the GDP may expand even beyond the measures taken into account by the government for the 2022 state budget. Essentially, this is due to a higher inflation”, said Valentin Tataru.
Consequently, Tataru also said, a GDP growth substantially lower than the prediction may not be so problematic for decision makers, at least not as long as it will not turn into recession, which we believe it is not likely.