Romania’s economy will probably grow 1.6 percent this year and expand 2.5 percent in 2014, driven by domestic demand, after output growth stagnated last year because of a drought, the European Commission said.
The Balkan nation will probably narrow its budget deficit to 2.4 percent of gross domestic product in 2013 from 2.9 percent last year under European accounting standards, the European Union’s executive arm said in a statement today.
“Benefiting from the expected acceleration in economic activity and based on the customary no-policy-change assumption, the deficit is expected to decrease further to 2.2 percent of GDP in 2014,” the commission said.
Romania’s economic rebound is gaining traction as the nation recovers from its worst recession on record, overcoming two years of stringent austerity measures. The country is on track to be among the fastest-growing economies among the EU’s newest members, trailing the Baltic nations of Latvia, Lithuania and Estonia.
The country’s 2013 inflation rate is forecast to average 4.6 percent, Europe’s fastest, before falling to 3.3 percent on average in 2014 as gradual government deregulation boosts energy prices, according to the EU.