Central bank: Romania's budget deficit to exceed 3% this year
Romania’s budget deficit will exceed 3% this year and 4% in 2017, said Lucian Croitoru, advisor to the central bank governor.
The country is currently growing due to a consumption going up at high rates of over 5% and investments that have resumed, he added, reports local Agerpres.
The VAT cut led to a consumption growth for the poor population, not for the wealthy ones. Consumption grew by 19%, after the VAT rate on food was reduced from 24% to 9% last year.
Romania’s average economic growth in the last 25 years amounted to 1%, Croitoru said.
editor@romania-insider.com
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