We project that Romania's 2023 fiscal deficit will remain high at about 6% of GDP, similar to the previous year. Our expectation of a narrowing deficit has been undermined largely by a shortfall in tax revenue. However, we expect stronger private consumption and substantial EU-funded investments will support real GDP growth of 3.6% on average over 2024-2026. We also expect the recently announced fiscal consolidation package to support a reduction in the fiscal deficit to 3% of GDP by 2026. We therefore affirmed our 'BBB-/A-3' ratings on Romania and maintained the stable outlook. On Oct. 13, 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
