In January 2024 alone, the government led by Prime Minister Marcel Ciolacu boosted Romania’s public debt by RON18 billion. Under the circumstances, the country’s public debt exceeded 50% of gross domestic product (GDP).
By comparison, considering that the European regulations require European Union Member States to cap their government debt at 60% of GDP, the 49% level is not high. Nevertheless, economists believe that a less robust economy, such as Romania’s, should maintain a lower public debt level, of maximum 45-50% of GDP.
In 2023, a year of economic growth, the country’s debt grew both in absolute figures, and relative to GDP, which means debt increased at a faster rate than the economy. Romania’s short-term debt was RON42 billion and the long-term debt was RON750 billion at end-January 2024.
The debt of the central administration stood at RON781 billion and the public debt of the local administration was RON21 billion.