The Romanian economy is expected to grow by 2.1% this year, compared to a level of 3.8% forecasted in June 2024, according to the most recent report on „Global Economic Prospects” published on Thursday by the World Bank.
Furthermore, in 2026, Romania’s GDP growth is projected to be 2.6%, down from the 3.8% level forecasted in June by the World Bank.
- Forecast Commission significantly reduced Romania's economic growth estimate
- Economist on Romania's increasing external debt: Politicians' proclaimed prosperity was artificially induced through financial infusions from loans
Growth in Central Europe is expected to rebound to 2.8% in 2025 and 3% in 2026, driven by strong private demand. Central Europe's export growth is expected to remain modest, following the subdued performance of the euro area.
Investment levels, especially in Poland and Romania, are set to improve due to delayed structural reforms and European funds. These countries have unlocked 19% and 33%, respectively, of their allocations from the Recovery and Resilience Facility, with around 13% of objectives achieved and positively evaluated, as stated in the report.
Despite the influx of EU funding, recent fiscal consolidation measures have led to a significant downward revision of Romania's prospects since June, according to the World Bank.
The Minister of Public Finance, Tanczos Barna, recently stated that this year's budget is based on an estimated economic growth of 2.5% and an exchange rate of one euro to five lei.