Romania‘s economy is expected to expand by 2.6% in 2023, the World Bank said, decreasing its June forecast for 3.7% economic growth for the year, according to See News.
For 2024, the World Bank expects Romania’s gross domestic product (GDP) to increase 4.2%, 0.3 percentage points (pp) higher compared to the June projection, the global lender said in its January 2023 Global Economic Prospects report published on Tuesday.
For last year, the bank estimates Romania’s economic growth at 4.6%, up 1.7 pp compared to the June forecast.
In the Central European sub-region, which includes Bulgaria, Hungary, Poland, and Romania, economic growth is expected to decline to 1.1% in 2023 from 4.5% estimated for 2022. In 2024, GDP growth in the region is seen at 2.7%.
“In Central Europe, growth is expected to slow sharply in 2023, to 1.1%, as these EU economies face significant spillovers from energy supply disruptions and tight financing conditions. High energy costs and elevated inflation are expected to continue to dampen household spending and raise production costs. The deceleration is expected to be exacerbated by weakening external demand, particularly from the slowdown in the euro area,” the World Bank said.
It forecast GDP growth of 3.2% for Romania in 2023 in the autumn edition of its Europe and Central Asia (ECA) Economic Update published in October.