Fitch Ratings on Friday affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, the agency reported on Friday."Romania's 'BBB-' rating is supported by EU membership and related capital inflows that support income convergence, external finances, and macro stability. GDP per capita, governance and human development indicators are above 'BBB' category peers. These are balanced against large twin budget and current account deficits (CAD) relative to peers, a weak record of fiscal consolidation, high budget rigidities, and a fairly high net external debtor position."The budget deficit (ESA terms) in 2023 is estimated at 6.1% of GDP, practically unchanged since 2022 and well above the initial government target of 4.4% of GDP. Fitch revised up the deficit path over the medium term in light of the less favourable starting position and the significant legislated pension increases in January and September 2024 with an estimated impact of 1.8% of GDP fiscal easing in 2025.Fitch projects general government deficits of 6% of GDP in 2024 and 6.4% in 2025."We expect meaningful fiscal consolidation over the medium term, helped by the re-introduction of EU fiscal rules, although there are significant downside risks, given current uncertainties around post-election fiscal plans and recent fiscal slippage has negatively affected policy credibility. "Fitch forecasts 3% growth in 2024 and 2025, as the growth momentum of the Romanian economy slowed in 2023 similar to the pattern in most EU members. The annual average GDP was 2% in 2023 according to preliminary data. "The large inflows of EU funds, including the cohesion funds from the new multiannual (2021-2027) financial framework and the recovery and resilience funds, will remain key drivers of growth and investment over the medium term. Beyond the direct demand stimulus, EU funds should also improve the growth potential of the economy, accelerating the catch-up towards the EU level."Fitch says that failure to consolidate the fiscal accounts over the medium, leading to a significant increase in the public debt to GDP ratio, is a factor that could, individually or collectively, lead to negative rating action/downgrade, whereas sustained reduction of the budget deficit that supports a firm decline in public debt/GDP over the medium term is a factor that could, individually or collectively, lead to positive rating action/upgrade.
Ireland can be seen as one of the most important business hubs in Europe and the European Union, as many international companies have established regional headquarters there. If you are looking for a country to expand your enterprise, you should definitely consider Ireland for several reasons that are presented below. Location and language The first […]
Cyprus is mostly known as a tourist destination. However, there is also a business side to it, as many investors choose it to open companies because of the favorable taxation system. Apart from its low corporate tax rate, there are a few more reasons why you should choose it if you are looking for a […]
The Romanian Commercial Code provides for various types of entities that can be created by natural persons and companies, local or foreign. Each of them has its own particularities, which can give it various advantages. How do you choose among them? We will review the main types of companies and their pros to help you […]
A new alley named after Romanian diplomat Nicolae Titulescu was inaugurated on Tuesday, December 9, in Paris’s Parc Monceau during a ceremony attended by Romania’s president Nicușor Dan and Paris mayor Anne Hidalgo. “I expressed my appreciation for the decision to name an alley in the beautiful Parc Monceau in Paris after the great Romanian […]
Oxygen Resort, a development located in central Romania’s Harghita county, has inaugurated its first bungalows. The first 18 bungalows are already functional, with another 17 units to be completed in the next stage, bringing the total to 35. The inauguration of the bungalows “marks the transition from a center dedicated predominantly to recreational activities to […]
Romania carried out a new medical evacuation mission for civilians from Gaza on Monday, December 8, transporting eight Palestinian patients and 29 accompanying relatives to Bucharest for treatment, according to the Department for Emergency Situations (DSU). The patients were evacuated aboard a Romanian Air Force C-130 Hercules aircraft after lacking access to adequate medical care. […]
