In Romania we focus on:
Sustainable infrastructure and regional development;
Productivity by helping private companies expand and improve workforce skills;
Financial intermediation and further development of capital markets.
As well as being a country where the EBRD works, Romania is also an EBRD donor. At the time of its accession to the European Union, Romania made available €18 million from state budget and EU’s pre-accession funds to support access to finance to local micro enterprises. More recently, Romania became a donor to the Eastern Europe Energy Efficiency and Environment Partnership Fund, contributing €100,000 for projects in Moldova.
The EBRD’s latest Romania strategy was adopted on 23 April 2020
Current EBRD forecast for Romania’s Real GDP Growth in 2023 1.8%
Current EBRD forecast for Romania’s Real GDP Growth in 2024 3.2%
The economy proved resilient in 2022 and expanded by 4.7 per cent, driven by robust domestic demand and accumulation of inventories. In the first half of 2023, growth decelerated to 1.7 per cent year on year, reflecting a sharp slowdown in the second quarter. Domestic demand remained robust amid higher government spending and investment, but depletion of inventories and a decline in exports of goods in year-on-year terms dragged down growth. Industrial production has failed to return to growth so far, reflecting the energy price shock as well as weaker foreign demand. Although inflation is still high, at 9.4 per cent in July 2023, real wage growth has been positive since March 2023, reflecting tight labour market conditions. The fiscal position has worsened, however, and the authorities are preparing a fiscal consolidation plan to be agreed with the European Commission. The fiscal deficit could inch up to 7 per cent of GDP in 2023, much higher than the budgeted 4.4 per cent of GDP. As such, moderating private consumption, together with potential tax adjustments, will likely define the growth path this year. Considering the slowdown in the first half of the year, GDP growth is forecast at 1.8 per cent in 2023 as a whole. Strong agricultural production and exports and robust EU-funded investments are sources of upside risks to the forecast, while weaknesses in industry and construction are expected to weigh on growth. In 2024, as inflation moderates and financial conditions ease, growth could accelerate to 3.2 per cent, absent any major shocks.
Romania in the EBRD’s 2022-23 Transition Report