The financial rating agency Moody's Ratings confirmed on Friday Romania's rating at "Baa3" but changed the outlook associated with the rating to "negative" from "stable," according to a press release from Moody's.The decision to change the outlook to negative reflects the risk that, in the absence of additional fiscal consolidation measures, Romania's fiscal strength could significantly weaken in the coming years, the rating agency said.According to Moody's baseline scenario, Romania's fiscal deficit will remain at a high level in 2025, at 7.7% of GDP, and will improve only gradually thereafter, which will increase the government debt burden to 68.5% of GDP by 2028. In the absence of significant improvement in the fiscal outlook, there is a risk that Romania's credit profile could deteriorate significantly compared to that of other countries with a "Baa3" rating.According to the rating agency, the confirmation of the "Baa3" rating for Romania reflects the size and moderate growth potential of the economy. On the other hand, Romania's credit profile is constrained by its high vulnerability to a risk event, given its increased exposure to geopolitical risks due to its proximity to the war in Ukraine.Based on the policies announced so far by the government, Moody's forecasts that the fiscal deficit will decrease from the 8.7% of GDP level reached in 2024 but will remain high at 7.7% of GDP in 2025 and will improve only gradually thereafter. Combined with a downward revision of Romania's growth forecasts, this will quickly push up the government debt burden to 59.3% of GDP by the end of 2025, and to 62.7% of GDP by the end of 2026, up from 48.9% of GDP at the end of 2023.The rating agency specifies that the rating outlook could be returned to "stable" if the indicators related to the government debt burden and debt affordability deteriorate significantly less than the current estimates. However, most likely, this would require the adoption of additional fiscal consolidation measures and improvement in spending discipline.
Balancing career success with personal growth is a challenge many professionals face today. As the pressure to achieve and perform increases, many begin to crave more than just success: they want clarity, alignment, and a deeper sense of purpose. For Lin Holmquist, business coach and one of Europe’s most acclaimed experts in Tantra, Yoga, and […]
CFR Călători, the state-owned railway company for passengers, announced that the first train entirely made up of rolling stock modernized with funds from the EU-backed Recovery and Resilience Fund (PNRR) was introduced on the Bucharest North – Constanța route. The train, which is already running, consists of a locomotive delivered by the Softronic factory in […]
The first edition of Urban Habits (nUH), a festival aiming to be “a space for ideas, debates, co-creation, and experimentation,” takes place between April 26 and April 27 at Lokal and on Erou Ion Călin Street, which will be temporarily transformed into a pedestrian space. The program will address themes ranging from innovation, design, and […]
Mall Moldova, the largest shopping center in the Moldova region, officially opened on April 17 in Iași, covering 110,000 sqm. Developed by Prime Kapital, in partnership with MAS P.L.C., Mall Moldova is part of a large-scale investment plan carried out by the two investors in Iași, worth approximately half a billion euros, which also includes […]
Cătălin Chimir, founder and managing director of construction management company SENARIA, discusses the challenges and opportunities in Romania’s construction and real estate sectors and shares valuable insights on how to maximize project profitability and avoid common mistakes. Despite a stable demand for development, the Romanian construction market remains fragile due to factors like labor shortages, […]
Hoinar.Odyssey, the eighth edition of the classical music festival, explores in 2025 the theme of travel. It proposes a concept that brings together classical music, jazz, electronic sounds, contemporary theater, a musical, and new literature. The event, scheduled to take place between May 15 and May 20 at the ACT Theatre and the Romanian Athenaeum, […]
