SIMILAR ARTICLES

ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise

Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult

March 15, 15:00, for 15 minutes: Romania really wants highways!

Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest “Romania wants motorways”. Of course, the country did not… Mai mult

Facebook has removed 30 pages and PSD propaganda accounts in Romania

Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult

Laura Kovesi, indicted in a second case opened by Magistrates’ Investigation Section

Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult

Gold reserve was still untouched: Populist diversion or another act against the BNR’s independence

The draft law on the so-called repatriation of Romania’s gold reserve is either a populist diversion or another attempt to remove gold from the administration… Mai mult

Cronicile

Country Report – European Semester: Romania risks a tough economy landing at change of cycle, because of growth model

de Adrian N Ionescu , 12.3.2018

In the absence of structural reforms and fiscal consolidation, Romania’s strong economic growth risks creating the conditions of a tough landing,” in case of a change of the economic cycle, according to the European Commission’s (EC) country report on Romania, within the European Semester.

However, there is still the opportunity to “rebuild the buffer fiscal areas and prepare the economy for weaker moments” (…), and the continuation of structural reforms “would support Romania’s transformation into an economy with higher added value and could improve economy’s resilience to a possible recession.”

The main milestones are:

  • Even if the growth is expected to slow down, it will “remain above the potential”, at about 4.5% in 2018 and 4.0 in 2019.
  • Potential growth is estimated to have been around 3.7% in 2017, compared to an average of 4.6% over 2000-2008.

  • The current account deficit widens to 3.2% of GDP in 2018 and 3.4% in 2019, as the import growth outpaced that of exports.
  • The headline deficit increases as a result of a pro-cyclical fiscal policy, and the EC’s projection is 3.9% in 2018  assuming no policy change.
  • The structural deficit (calculated after the economic cycle correction) increases to 4.3% in 2018, after 3.3% in 2017 and 2.2% in 2016.
  • Poverty remains high. In 2016, the risks of poverty and social exclusion increased, affecting 38.8% of the population and reversing a decreasing trend of several years.
  • High economic growth is accompanied by high inequalities. The richest 20% of the population earns seven times more than the poorest 20%, compared to a ratio of five in the EU-28
  • At the same time, the bottom 10 % of the population earning 14 times less than the bottom half, one of the highest ratio in the EU.
Mergeți în homepage ›

Publicat la data de 12.3.2018

Lăsați un comentariu


NEWS

ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise

Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult

March 15, 15:00, for 15 minutes: Romania really wants highways!

Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest "Romania wants motorways". Of course, the country did not… Mai mult

Facebook has removed 30 pages and PSD propaganda accounts in Romania

Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult

Laura Kovesi, indicted in a second case opened by Magistrates' Investigation Section

Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult

Gold reserve was still untouched: Populist diversion or another act against the BNR’s independence

The draft law on the so-called repatriation of Romania's gold reserve is either a populist diversion or another attempt to remove gold from the administration… Mai mult

Magistrates’ protest, extended to 80 courts and prosecutors' offices. List of requests

The protest of magistrates from Cluj Napoca. More than 200 prosecutors and judges, with white bands on their arm, came in front of the local… Mai mult

Laws on judiciary, amended again by OUG: judges who were once prosecutors may be appointed as prosecutors

The Government approved on Tuesday an OUG that was not publicly debated, which amends several provisions from laws on the judiciary that refer to prosecutors… Mai mult

"Iceberg" operation: ANAF announces that it selected 487 companies which are to be audited based on risk analysis

Virgil Pirvulescu, Vice President of ANAF at PwC Annual Tax Conference The National Agency for Tax Administration (ANAF) has identified 487 large and medium-sized companies… Mai mult

Commissioner Corina Cretu: There is a risk that Magurele Laser will not be completed during this budget implementation

In the absence of a rapid response from the Romanian Government to the European Commission, there is a risk that Magurele Laser can no longer… Mai mult

Romania joins countries that recognize Juan Guaidó as interim president of Venezuela

The Presidential Administration announced on Friday that President Klaus Iohannis, "as the head of Romania’s foreign policy decisions and Romania's representative at the external level,… Mai mult

AmCham Romania: Counterproductive public policies have reched an alarming level

Further to the message on the impact of OUG 114/2018 transmitted on Thursday to the organizations in the Coalition for Development of Romania (CDR), AmCham… Mai mult

Finance minister stopped borrowing money from the market. Teodorovici: We have funding resources for minimum six months

Minister of Public Finance (MFP), Eugen Orlando Teodorovici, has ordered to stop borrowing operations on the market because MFF would have all the money needed… Mai mult

BNR: If we sold foreign currency to defend Romanian leu, as PSD wants, interest rates would explode and ROBOR would go over 5-7 percentage points

The National Bank of Romania wants a "loyal cooperation" with the Ministry of Public Finance, and that involves a prior consultation with the central bank… Mai mult

Tax on bank assets was not included in 2019 draft budget

The tax on bank assets was not included in the 2019 draft budget, published on Thursday evening by the Ministry of Public Finance (MFP). According… Mai mult