BUCHAREST (Romania), January 7 (SeeNews) - Romania's economic growth will slow down to 4.1% in 2020, in line with the trend of the global economy, consultancy PwC said on Tuesday.
A stable and predictable legislative framework, as well as public investments, especially in physical infrastructure could stimulate economic activity, PwC said in a press release, quoting excerpts from its Global Economy Watch - 2020 Predictions report.
PwC warned that Romania's low budget revenue expressed as percentage of GDP and the rapid pace of increase in current state spending put pressure on fiscal policy and limit its role in stimulating economic growth.
"In 2020 and even more in the coming years, there should be a consolidation of public finances by improving tax collection and recalibrating public spending to create a favourable investment climate," PwC Romania country managing partner Ionut Simion said.
On Monday, Romania's president Klaus Iohannis endorsed the 2020 state budget based on projections for economic growth of 4.1% and cash deficit equivalent to 3.59% of GDP, above the EU’s 3% threshold.
(1 euro = 4.7750 lei)