Despite a challenging economic outlook, we expect Romania's economy will expand by 2.3% in real terms in 2023, supported by generous EU funds. We believe Romania's fiscal deficits will contract over the next few years, which will help stabilize the stock of public debt, net of liquid assets, at around 43% by the end of 2026. Romania's current account deficit will remain substantial for several years, averaging about 7% during 2023-2026, partly funded by high EU fund inflows. We affirmed our 'BBB-/A-3' ratings on Romania and maintained the stable outlook. On April 14, 2023, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Romania. The outlook is stable. The stable outlook balances
