Romania’s budget deficit will most likely reach 4% of the gross domestic product (GDP) this year, says Ionut Dumitru, chief economist at Raiffeisen Bank Romania and former president of the Fiscal Council.

He thinks that the new Government, which won’t be installed earlier than November, won’t have time to correct the imbalances.

The budget revenues are under target while the expenditures are higher than estimated by almost EUR 2 billion.

In the first eight months of the year, the budget deficit reached 2.1% of the GDP, up by half compared to the same period of 2018.

“It’s almost impossible to close the deficit at 3% (of GDP – e.n.), regardless of the corrections that may be done,” Dumitru said, quoted by Profit.ro.

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editor@romania-insider.com