Pre-election spending will push Romania's fiscal deficit to close to 6% of GDP this year and we expect only gradual consolidation over the next few years. We anticipate that inflation will remain elevated at close to 6%, and the current account deficit (CAD) will stay at a high of 7% of GDP this year. In our view, strong domestic demand will support GDP growth of 3%. We affirmed our 'BBB-/A-3' ratings on Romania and maintained the stable outlook. On April 12, 2024, 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 our view of the country's high twin deficits against the buffers provided
