PwC study: Public sector investments increase, streamlining needed for Romania’s economic growth

The global economy is expected to grow by 4 percent in 2018, expressed as PPP, adding USD 5,000 billion over the current value, according to the latest Global Economy Watch report by PwC.

According to PwC’s economic forecast, the energy sector is expected to grow, and the unemployment rate in the G7 countries will reach the lowest level in the last 40 years. The main growth engines of the global economy – the US , the emerging countries in Asia and the eurozone will contribute by almost 70 percent to the global economic growth in 2-18, compared to the 60 percent average recorded after 2000.

The economy of the eurozone will increase by 2 percent in 2018. According to the PwC survey, the economic growth of the countries at the periphery of the eurozone will exceed that of the countries in the eurozone core for the fifth year in a row. Out of the large economies of the eurozone, the Netherlands is expected to record the biggest growth, with 2.5 percent. At the opposite end, the uncertainty regarding Brexit will impact on the growth rate of the UK, which will stand at 1.4 percent.

Romania’s economy will see a similar trend

According to the PwC study, the Romanian economy will experience a similar trend. “We see in 2018 a similar trend of the economic development of Romania. For a sustainable and long term economic growth there is a need for predictability, financial and fiscal stability, and political consensus on some major projects. There is a need for the business environment to be able to count on the long term on the same rules of the game so that it can plan its investments well,” Ionut Simion, country managing partner PwC Romania said in a statement. “At the same time, there is a need for an increase of public investments and for them to become more efficient,” Simion said.