Garanti Bank has revised up its forecast on Romania’s GDP evolution in 2017, from 3.7% to 4%.

The growth will most likely be supported by trade and the industry’s positive evolution, according to the bank's latest macroeconomic report for the first quarter of this year.

In 2016, Romania recorded one of the highest economic growths in the European Union, due to fiscal relaxation measures, which boosted the trade and transport sector by 11% compared to the previous year, according to the Garanti Bank report. The GDP growth was also boosted by the services sector, which rose by 6% in 2016, and in particular by the IT sector, which grew by 14% last year compared to 2015.

On the other side, investment fell by 3% in 2016, compared with an average increase of 6% in 2014-2015. A slight recovery in investments is expected this year.

editor@romania-insider.com