Romania's economy to expand 2.7% in 2024 - iBanFirst

While economic growth is expected to be moderate, it represents a notable performance considering the current macroeconomic conditions across Europe, the company said.

The growth of the country's gross domestic product (GDP) will stabilise to 4% per year on average in the coming decade, said iBanFirst's country manager for Romania, Alin Latu.

Concerns still exist regarding Romania's high budget deficit, currently at 5.6% of GDP, as it could pose a long-term risk to the economy. Inflation also remains a focal point, with January figures indicating a sharp increase to 7.4%. iBanFirst analysts expect inflation to hover around 5% by end-2024, posing challenges to monetary policy.

The company forecasts stability in the euro/leu exchange rate with fluctuations within a narrow range throughout the year. However, the U.S. dollar/leu rate is forecast to experience an upward trend, driven by geopolitical factors and the resilience of the U.S. economy.

(1 euro=4.97343 lei)