Research Update: Romania 'BBB-/A-3' Ratings Affirmed; Outlook Stable

Preelection spending will push Romania's fiscal deficit to beyond 7% of GDP this year; the fiscal outlook beyond this year's general election remains uncertain. Real GDP growth this year will fall short of our previous expectation as domestic demand has largely been channeled into rising import growth. We therefore expect Romania's real GDP to expand by only 1.6% of GDP this year. However, we anticipate gradual fiscal consolidation and stronger growth over the next three years on the back of EU funding. We affirmed our 'BBB-/A-3' ratings on Romania. The outlook remains stable. On Oct. 11, 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

...- Preelection spending will push Romania's fiscal deficit to beyond 7% of GDP this year; the fiscal outlook beyond this year's general election remains uncertain. - Real GDP growth this year will fall short of our previous expectation as domestic demand has largely been channeled into rising import growth. We therefore expect Romania's real GDP to expand by only 1.6% of GDP this year. - However, we anticipate gradual fiscal consolidation and stronger growth over the next three years on the back of EU funding. - We affirmed our '###-/A-3' ratings on Romania. The outlook remains stable....

Research Update