EC revises downwards Romania’s economic growth forecast to 3.6%. Fin Min Teodorovici disagrees. Budget rectification – this month

The European Commission has revised downwards the forecast regarding Romania’s economic growth in 2018, from 4.5% to 3.6%.

For 2019, the EC expects 3.8% GDP growth, against the 3.9% growth announced in spring. For 2020 the Commission points to a 3.6% growth.

Romania’s economic boom is calming down as the pace of private consumption increase is slowing down and the negative contribution of growing net imports is worsening. During the period of forecast the prognosis on the GDP is seen as moderate growth, the EC says.

Finance Minister, Eugen Teodorovici, does not agree with the European Commission’s forecast, says the Government considers the estimated from the EC and IMF, but the economic growth this year will be the one envisaged by the Government, ziare.com reports.

“Every year we have discussions with the International Monetary Fund, yesterday we had talks with them. We had discussions with the European Commission, the Fiscal Council and, I repeat, we consider their opinions, it’s good sense to take them into consideration, but we as Government maintain our point of view that the economic growth will be the one we’ve anticipated,” Teodorovici said.

The Finance Minister added that history has shown the budgetary execution every year is the one anticipated by the Government, be it in terms of European funds, deficit or inflation.

The IMF has also revised downwards recently the economic growth for this year and the next year.

Next budget rectification this month

Finance Minister Teodorovici said on Thursday the next budget rectification will take place in November, whereas the Presidency has not requested additional funds.

“The rectification, in November. Talks are conducted Monday, Tuesday and Wednesday, we will know the final form in the coming days,” Teodorovici said.

Asked about the funds requested by the intelligence services and the Presidency, the Finance Minister said no such requests have been submitted.

“The Presidency has not asked for money, this means the first budget rectification was correct. I don’t think the services have asked either,” the minister said.

On August 7, the Finance Minister said the budget of the Presidential Administration has been cut by RON 11.1 million.