Public spending will drive growth in Romania

Significance

Investment in infrastructure has offered opportunities for economic expansion despite shrinking exports, weak consumption, inflation and high interest rates. Romania’s positive outlook contrasts with the World Bank's 1.1% growth forecast for Central Europe and downbeat expectations for the EU as a whole, where the war in Ukraine is having a negative impact.

Impacts

• Inflation will return to target levels, reaching 3.2% in 2025.
• The government will keep in place social spending programmes and energy-price controls.
• Unemployment will remain at record-low levels.