Romania could record an economic growth of 3.6% this year, down from 5% in 2016, and a deficit of 3.3%, said Maximilien Lambertson, an analyst at The Economist Intelligence Unit (EIU), reports local Agerpres.

The Social-Democratic Party (PSD) will follow an 'anti-austerity' program, which means further tax reductions, wage hikes in the public sector, and the increase in the minimum wage.

The budget deficit will amount to 3.3%, calculated with the ESA 2010 methodology. This exceeds the 3% limit imposed by the EU. The increase in the budget deficit will be related to higher costs, declining revenues, and the decrease in the economic growth.

The Government estimated a GDP growth of 5.2% when making the state budget for 2017. However, Lambertson said that the growth rate would slow down to 3.6%.

editor@romania-insider.com