„We expect a deceleration in economic growth in 2017, considering that consumption will contribute less to the growth, than in 2016. Furthermore, fixed investments will decrease, amid higher social expenditure and a low absorption of EU funds, considering that the absorption rate for the 2014-2020 framework will be behind again,” the report reads.
In 2016, overall consumption rose by 6.7% and private consumption by 7.5%, with the latter ensuring the economic growth. Investments saw zero increase in 2016, weighted down by a decrease in public spending which shrank by 40% versus 2015, to RON29.5 billion from RON41.3 billion. The report says investments will decrease further along with an increase in social expenditure and on the backdrop of a low absorption rate of EU funds.