Moody’s Investors Service maintained the BBB-/A-3 rating for Romania’s long- and short-term governmental debt in local and foreign currency, according to the Finance Ministry. The agency is predicting a 4 percent real GDP growth in 2018, and a 3.5 percent growth for 2019.
“The announcement by Moody’s shows that our country has a solid economic growth that will be maintained over the following years. This growth outlook and the moderate public debt are reasons why investors should trust the Romanian economy,” said Finance minister Eugen Teodorovici.
Among the strengths Moody’s decision regarding Romania was based on include: the robust potential of economic growth on the medium term in the context of existing challenges of continuing structural reform; the moderate fiscal capacity supported by the low level of public debt, despite the risks associated with pro-cyclic fiscal policies; the moderate institutional capacity that reflects Romania’s progress since becoming a member of the EU; the moderate exposure to external risks.
Meanwhile, the dynamic of investments is expected to improve as private consumption continues to be the main growth factor, while the net export contribution will remain negative.
“Moody’s says that the factors that could lead to an improvement of the country rating relate to fiscal and external measures, accompanies by a better predictability and credibility of these measures,” said the minister.
At the same time, applying structural reforms supporting the business environment and resolving the lack of infrastructure will have a positive impact on long-term growth.
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