Romania’s Gross Domestic Product (GDP) will grow by 2.6% this year and by 3.6% in 2023, according to the European Commission’s spring economic forecasts. This is a smaller increase than expected in the previous assessments, in February. The situation is valid for the whole of the European Union and is mainly due to the disruptions caused by the war waged by Russia in Ukraine. European Commissioner for the Economy Paolo Gentiloni has announced that the European average inflation rate will be 6.8% this year. He also said that in April European inflation averaged 7.5%, the highest value ever recorded in the monetary union. According to the Commission, inflation in Romania will reach 8.9% this year, double the percentage reported in 2021. Inflation is expected to fall to 5.1% next year, but the Commission warns that there are growing economic risks as the war in Ukraine is prolonged.
