The World Bank maintained its January estimate and stated on Thursday that it anticipates Romania‘s gross domestic product (GDP) to rise by 3.3% in 2024, according to See News.
The World Bank stated in its Spring 2024 Europe and Central Asia Economic Update report that it revised its projection for Romania’s GDP growth in 2023 to 2.1%, increasing 0.3 percentage points (pp) above its January forecast. Additionally, the nation’s GDP growth rate in 2022 was also revised to 4.1%. a cut by 0.5 percentage points from the estimate provided in the January report.
Romania’s economic performance and convergence with the EU have improved significantly, but the report notes that there are still major obstacles to overcome, including regional disparities, weak institutions, a lack of skilled labor, poor connectivity, and vulnerabilities to natural disasters and climate change. The nation continues to have among of the highest rates of poverty and inequality in the EU.
The World Bank noted that Romania should prioritize reducing inflation and addressing fiscal challenges in the short term. These objectives are especially important given that 2024 will be an election year. The bank advised the nation to carry out changes under the National Recovery and Resilience Plan (NRRP) in order to optimize the absorption of EU funding.
Romania’s economic growth is expected to increase to 3.8% by 2025, according to the World Bank, which reaffirmed its January forecast. In 2026, GDP growth is expected to stay at 3.8%.
Romania’s economy is expected to grow by 3.4% in 2024 and by 4% in 2025, according to a forecast made in February by Romania’s National Commission for Strategy and Prognosis, an analytical unit under the finance ministry.