Romania to hit one of the highest GDP growth rates in 2024 in the EU, but also the highest inflation rate
Romania will have one of the highest GDP growth rates in the European Union this year, but also the highest inflation rate. The European Commission’s economic forecasts show European GDP growth of 1.0% in 2024 and 1.6% in 2025. Romania is among the countries with the best growth forecast: 3.3% in 2024 and 3.1% in 2025. A positive element here is investment. Romania has the best forecast for 2024, a growth of 6.8% compared to the European average of 0.3%, the same for 2025, an increase of 6.1% compared to the European average of 2%. The unemployment rate is again better for our country than for the European average: for 2024, the rate is 5.5% compared to the EU average of 6.1%. However, in terms of inflation, we are the worst performer in the European Union, with an estimated 5.9% for 2024, while the EU average is 2.7%. For 2025, estimates show inflation for Romania at 4%, again the highest in the European Union, where the average is 2.2%. Forecasts for the government fiscal balance show again the highest negative figures for our country: minus 6.9% in 2024, against the European average of minus 3% and even more in 2025, namely minus 7% against the European average of minus 2.9%.
Central bank of Romania revised slightly upwards its inflation forecast for the end of 2024
The National Bank of Romania (NBR) has revised slightly upwards its inflation forecast for the end of this year, after announcing that this indicator will enter a slow downward path. Governor Mugur Isărescu said on Wednesday that several factors have a significant impact on the evolution of inflation, including wage increases generally well above productivity. The National Bank of Romania raised its inflation forecast for the end of this year from 4.7% to 4.9% and maintained its forecast for the end of 2025 at 3.5%, after previously announcing that inflation would remain on a downward path but at a slower pace than was expected. „This reduction in inflation is mainly driven by the core inflation component, which is good because it shows that monetary policy is working. We are trying that combination, as I told you, we are bringing inflation down, without creating recession,” said Mugur Isărescu, governor of the NBR. The NBR governor also said that when inflation will return to the range targeted by the NBR will, however, also depend a lot on when the Romanian central bank will take the decision to cut the key interest rate, but also on the level it will reach.
New edition of the Eurosfat Forum starts in Bucharest, dedicated to debates on European policies and affairs
A new edition of the Eurosfat Forum, dedicated to debates on European policies and affairs, starts on Wednesday in Bucharest. More than 70 discussion sessions will take place over four days, with 200 speakers, informs the Representation of the European Commission in Romania. This year, the event takes on an international dimension with the Global Forum on Modern Direct Democracy, which will take place for the first time in Eastern Europe. The central theme of the forum will be the concept of trust in democracy and will provide an opportunity for debates on topics such as Romania’s future in the European Union, exchange of best practices among mayors, the future of security in the Black Sea region and energy perspectives.
Magda Baciu
