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Economy up by 4pc yoy in Q1. Romania wants to reach 70pc of the euro region’s average GDP per capita by 2020

Romanian economy grew by 4%, as gross series, in the first quarter and by 4.2%, as seasonally adjusted series, against the similar period last year, estimates released by the National Statistics Institute (INS) inform.

The GDP in Q1 2018 was, in real terms, at the same level as the one in Q4 2017.

The Q1 2017 results, as compared to Q4 2016, were revised from 2% to 2.4%, the results in Q2 2017, against the previous quarter, were revised downwards from 1.7% to 1.6%, as well as Q3 2017 as compared to Q2 2017, from 2.4% to 2.2%, whereas the Q4 2017 results, against Q3 2017, were reviewed from 0.5% to 0.3%.

The European Commission has maintained the estimates regarding Romania’s economic growth in 2018 at 4.5% and for 2019 at 3.9%.

The World Bank expects the economy to advance by 5.1% in 2018, nevertheless it warned this growth is above the potential. The IMF expects a 5% economic growth whereas EBRD points to 4.6% in 2018.

The National Prognosis Commission (CNP) estimated growth this year at 6.1%.

In 2017, the economy grew by 6.9% against the previous year, in 2016 it grew by 4.8%, the highest level since 2008 and in 2015 the level was 3.9%.

Bloomberg: EU’s three poorest members, Romania, Bulgaria Croatia, want to join the euro

The three poorest European Union countries now have euro adoption in their cross-hairs, Bloomberg informs.

The latest is Romania, which said last week that it will present its strategy by year-end, rekindling an idea it shelved in 2015. It joins Bulgaria and Croatia in seeking a path to joining the currency bloc. Doing so may help the Balkan nations stay close to the EU core as questions arise over the future distribution of crucial development funds.

“After Brexit, being outside the euro area might make you an outlier,” Juraj Kotian, a Vienna-based economist at Erste Group Bank AG, said Friday by phone. “If you look at the prepared EU budget you’ll see there’s much more emphasis on the euro area. The European Commission wants to have this convergence facility for joining the euro, so countries need to take advantage of that.”

Romania wants to reach 70 percent of the euro region’s average gross domestic product per capita by 2020, up from about 60 percent now, according to the latest convergence program approved Thursday. “Setting a concrete euro-adoption date requires first an in-depth analysis, especially of the real, structural and institutional convergence,” the government said, according to the quoted source.

A summit on the future of the EU after Brexit, to be held next spring in Romania, may shed some light on their prospects.

 

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