The Romanian economy will grow by 2.1% this year, compared to a level of 3.8% forecast in June 2024, according to the latest report on the ‘Global Economic Prospects’, published by the World Bank. Also, in 2026, Romania’s GDP growth is expected to be 2.6%, compared to a level of 3.8% forecast in June by the World Bank.
Growth in Central Europe is expected to recover to 2.8% in 2025 and 3% in 2026, driven by robust private demand. Export growth in Central Europe is expected to remain modest, following the eurozone’s slow progress.
Investment levels, particularly in Poland and Romania, are expected to improve, following structural reforms and delayed European funds. These countries have received 19% and 33% of their allocations from the Recovery and Resilience Facility, respectively, with around 13% of targets met and positively assessed, the report says.
Despite the influx of EU funding, recently announced fiscal consolidation measures have contributed to a significant downward revision of Romania’s outlook since June, the World Bank says.