Research Update: Romania Outlook Revised To Stable From Negative On Decreasing Fiscal Risks; 'BBB-/A-3' Ratings Affirmed

Romania's recently instated government has taken action to defuse near-term fiscal risks and we now forecast that net general government debt will stabilize at 50% of GDP by 2023. In our view, the government's decision to roll back previous costly pension legislation will be key to achieving budgetary stability, and we assess its medium-term consolidation agenda as credible. After contracting by a modest 3.9% in 2020, we expect Romania's economy to rebound by a solid 5% this year, based on EU-funded investment and the return of domestic demand. We are revising our outlook on Romania to stable from negative, while affirming our 'BBB-/A-3' sovereign credit ratings. On April 16, 2021, S&P Global Ratings revised its outlook on Romania to stable

...- Romania's recently instated government has taken action to defuse near-term fiscal risks and we now forecast that net general government debt will stabilize at 50% of GDP by 2023. - In our view, the government's decision to roll back previous costly pension legislation will be key to achieving budgetary stability, and we assess its medium-term consolidation agenda as credible. - After contracting by a modest 3.9% in 2020, we expect Romania's economy to rebound by a solid 5% this year, based on EU-funded investment and the return of domestic demand. - We are revising our outlook on Romania to stable from negative, while affirming our '###-/A-3' sovereign credit ratings....

Research Update