Economic growth has remained strong, raising people’s incomes towards those in
advanced EU countries. However, macroeconomic imbalances have become increasingly
evident: the current account and fiscal deficits have been widening and inflation
pressures are building. Economic growth is expected to stay above potential in 2019 on
the back of continued fiscal stimulus, but slow down over the medium term due to
faltering investment and reforms. The growing imbalances are eroding policy room for
maneuver and increasing the risk that the convergence with EU could suffer a setback,
triggered by domestic policy excesses or swings in global investor sentiment.
Romania
