Mihaela Dicu

Romania's economy will grow by 5.1% in 2021 and 4.9% in 2022, as against advancing 3.8% in 2021 and 4% in 2022, as estimated this February, according to the Spring 2021 Economic Forecast published by the European Commission on Wednesday. Unemployment is projected at 5.2% in 2021 and 4.8% in 2022, from a 5% last year.

Romania recorded the most significant economic growth of the 27 EU member states in the first quarter of 2020, compared to the same period in 2019, according to the flash estimates published on Friday by the European Statistical Office ( Eurostat).

The European Bank for Reconstruction and Development (EBRD) has downgraded its estimates of Romania's economic developments in 2020 as a result of the crisis caused by the coronavirus pandemic, according to the bank's latest Regional Economic Prospects published on Wednesday.

The new pensions law is the main factor causing the rapid increase in the general government deficit up to 6.1 percent of the GDP in 2021, and the high fiscal sustainability risks, the European Commission estimated in the Country Report for Romania published on Wednesday.

Fitch Ratings has affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, according to a Friday release of the credit ratings and research agency. Romania's Country Ceiling was affirmed at 'BBB+', Short-Term Foreign-Currency IDR affirmed at 'F3' and Short-Term Local-Currency IDR affirmed at 'F3', according to the release.

The European Bank for Reconstruction and Development (EBRD) has improved its estimates of Romania's economy in 2019 and maintained its 2020 GDP forecast, according to a press statement released on Wednesday by the bank. According to the latest EBRD forecasts, Romania's economy is expected to grow 4pct this year, up from its previous estimates of May 2019's 3.2pct.

The European Investment Bank (EIB) announced on Monday that is has agreed to lend 21.1 million euro to support the thermal insulation of 400 residential buildings in Sector 2 of Bucharest, a release of the international financial institution informed.

Main credit challenges facing Romania include the expansionary fiscal policy stance and deteriorating current account balance, according to the findings of a Moody's Investors Service annual report, which predicts real GDP growth of 3.3pct in 2019 and 3.5pct in 2020 backed by resilient domestic demand.

A staff team of the International Monetary Fund (IMF) led by IMF Head of Mission Jaewoo Lee will be in Bucharest May 27 - June 7. On Monday, an IMF staff team led by Jaewoo Lee began a two-week visit to Bucharest to conduct an annual review of the Romanian economy, known as Article IV consultations. The team will discuss economic developments and policies with Romanian officials.

Fitch Ratings has affirmed Romania's Long-Term Foreign and Local Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, but warned that the budget deficit might widen to 3.4 percent of the GDP in 2019, a release of the agency informed.