Press Review - November 2, 2018

11.02.2018 By Oana Gavrila

EBRD Lowers Romania's Economic Growth Projection to 4.2% in 2018

The European Bank for Reconstruction and Development (EBRD) has lowered its economic growth projection for Romania to 4.2% in 2018, from 4.6% projected in its previous forecast in May.

EBRD also lowered the country's economic growth projection for 2019 to 3.6% from a previously seen 4.2%, according to the “Regional Economic Prospects in the EBRD Regions” report released Thursday.

“Growth in Romania is expected to gradually moderate from 7.3% in 2017 to 4.2% in 2018 and 3.6% in 2019, more in line with the economy’s long-term potential growth.

(...) Bulgaria and Romania are also performing well though signs of overheating are becoming apparent in the latter,” the report notes.

 

Romania's Public Debt Grew to Over EUR1,000 Per Capita

Central bank data confirmed last month that Romania's total external debt grew in the first seven months.

However, the finance ministry says the country ranks fourth in the EU by debt size, with the lowest debt after Estonia, Luxembourg, and Bulgaria.

Liberal MP Florin Roman said Thursday the government borrowed EUR20 billion, taking the debt size to EUR1,006 per capita. Each month, the government borrows EUR1 billion to pay salaries and pensions, while public investments are at a record low, he said.

 

Social Democrat Leader To Propose Two Party Executive Committee Meetings

Social Democrat Party (PSD) leader Liviu Dragnea will propose that the group hold two national executive committee meetings in the near future, one for “political subjects”, and one to decide on the upcoming government reshuffle, party sources said.

Romanian Prime Minister Viorica Dancila announced on Tuesday that she finished her assessment of cabinet members, which she will present in the committee meeting. The chief of Cabinet is due to make state visits to Bulgaria on Friday and to Oman and Qatar in the period November 3-8.

It is unclear which ministers are in danger of being replaced, but rumors suggest that transport minister Lucian Sova, justice minister Tudorel Toader and economy minister Danut Andrusca are the most likely to be dismissed.

Dragnea said Wednesday Toader would not be considered in the reshuffle, with the situation complicated by the fact that he is supported by PSD’s ruling coalition partners ALDE.