The European Bank for Reconstruction and Development (EBRD) predicts that the Romanian economy will expand by 4.6 percent of GDP in 2018, while its previous estimate for the local economy stood at 4.2 percent.
The bank states that Romania’s growth will gradually slow down compared to last year’s increase of 7 percent that was fueled by the loose fiscal policy and the increase of wages.
“At present a recovery is seen at more sustainable levels of 4.6 percent in 2018 and 4.2 percent in 2019,” said the EBRD.
The financial institution went on to say that reforms are needed to keep the economic growth momentum.
Romania’s National Prognosis Commission estimates an economic growth of 6.1 percent. The World Bank predicts a growth rate of 5.1 percent, while the International Monetary Fund (IMF) expects an output of 5 percent.