The public debt of Romania’s Government increased by EUR 13.9 bln during the first three quarters of the year (to EUR 130.5 bln at the end of September), compared to the 15.5 bln rise during the entire last year, and yet the public debt to GDP ratio eased to 47.6% down from 48.8% at the end of 2021.

This was the effect of inflation: the statistics office INS estimated a 16.8% GDP deflator for the third quarter of the year (Q3), a figure that may prompt data manipulation accusations from some analysts again but already pushed up the nominal GDP to a level sufficient to dilute key ratios such as public debt to GDP.

The current account deficit to GDP may also look better with the new nominal GDP figures now available.

iulian@romania-insider.com

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