Romania overview

Cityscape

In Romania we focus on:

Promoting stability and expanding products in the financial sector. Given the continuing global economic and financial uncertainty, the stability of the financial sector is still at risk. Further development is also required in the areas of leasing and insurance and local capital markets.

Strengthening infrastructure through improved efficiency and greater private sector involvement. It is necessary to develop the national infrastructure sector, especially roads, and, where appropriate, to introduce private sector investment via concessions /PPPs and the privatisation of transport operators. In many infrastructure operations (water, waste, roads, rail, district heating, etc.) there is a need for improved operating efficiency and service levels, and less dependence on public subsidies and state financing.

Restructuring the power sector and increasing energy efficiency and sustainability. A large part of Romania’s energy sector is still state-owned and needs to be restructured and/or privatised to encourage investment and to promote efficiency. Despite improvements in recent years, Romania is still an energy-intensive economy and needs to make further progress in the transition to an efficient, low carbon economy.

As well as being a country where the EBRD works, Romania is also an EBRD donor. In 2015 Romania became a donor to the Eastern Europe Energy Efficiency and Environment Partnership Fund, contributing €40,000 for projects in Moldova.

The EBRD’s latest Romania strategy was adopted on 30 September 2015

Current EBRD forecast for Romania’s Real GDP Growth in 2018 4.2%

Current EBRD forecast for Romania’s Real GDP Growth in 2019 3.6%

Following a growth rate of 7.3 per cent in 2017, one of the highest rates in the EU, the economy is slowing down in 2018 with GDP growing by 4.0 per cent year-on-year in the first half of the year. Private consumption has been making the highest contribution to growth, driven by the tightening labour market and continuing loose fiscal policies. Investment growth has also increased as a result of increased absorption of EU funds. Signs of overheating have appeared in the form of a widening trade deficit, pushing the current account deficit to 3.4 per cent of GDP at the end of 2017, and inflation which peaked at a 5-year high of 5.4 per cent in June 2018. A fiscal stimulus has pushed the budget deficit to 2.9 per cent of GDP in 2017, with a further deficit recorded so far in 2018.

Romania in the EBRD’s 2018-19 Transition Report

Romania in the latest BEEPS survey