Romania will record an average growth of about 3% in the following years, if local competition increases, macroeconomic imbalances decrease and domestic consumption goes up, according to rating agency Moody's Investors Service.

The country’s fiscal policy will be immune to the recent political instability, given that tax reforms have helped Romania to reduce the fiscal deficit to 1.5% of GDP in 2014, compared with 8.9% in 2009.

However, the relatively high level of external debt and the inefficient state companies are constraining the infrastructure development, according to Moody's.

“Romania continues to record solid economic growth, due to rising exports and domestic demand in a low inflation environment. However, the weak growth in domestic lending means that there is limited space for increased economic activity,” said Moody's analyst Mathias Angonin.

editor@romania-insider.com