Government of Romania

06/06/2019 | Press release | Distributed by Public on 06/06/2019 10:48

Prime Minister Viorica Dancila: The Executive will continue to implement the Programme for Government, to Romanians’ benefit, in the context of ensuring the economic(...)

Prime Minister Viorica Dancila met today with the IMF expert delegation led by Jaewoo Lee, Head of the IMF Mission for Romania and Bulgaria, who is paying the annual visit for the evaluation of the macroeconomic situation, a procedure of periodic consultation with national authorities.

The Head of the Executive highlighted that Romania has recorded in recent years one of the highest economic growths in the EU, a trend which, according to the forecasts, will continue in the next years. The economic advancement is estimated to stand at 5. 5 percent of GDP, in 2019, in the context of a normal agricultural year and the recovery of the services and investment sector, and in 2020, economic growth is estimated to stand at 5.7 percent.

'This very morning, Eurostat and the National Institute of Statistics have given us good news again about the increase in the Gross Domestic Product. Romania records the second largest growth in the EU in the first quarter of this year. It is a sustainable advance, to which almost all branches of the economy have contributed. The official data on economic development validate the governmental measures and confirm us that we are on the right track, ' stated the Prime Minister.

In this context, investments will consolidate amid an improvement in the implementation of projects financed from EU funds, in the context in which the absorption rate has increased to 29 percent, very close to the European average of 31 percent, the population incomes have increased, and the national budget funding sources have been widened and diversified.

Morever, the fiscal stimulus measures granted by the Government to the construction sector have led to a significant revival of this activity in the first quarter of 2019, a positive trend that will contribute to economic growth as well as to streamlining investment.

At the same time, Prime Minister showed that employment has a positive dynamics, concomitantly with a consistent increase in wages both in the private and in the public sector. Romania also maintains its competitiveness level, with a robust growth of exports and it continues to make significant gains in market share in exports, attracting an increasingly larger part of the trade related to the EU's production chains.

Another aspect highlighted by Prime Minister Dancila was that Romania has one of the lowest government debts in the EU, being under the 60 percent threshold established under the Maastricht Treaty. Public debt represents 38.7 percent of the GDP at the end of March 2019, according to national legislation, and in accordance to the EU methodology, the public administration debt is 34.9 percent of the GDP, reported on the same date.

'The Executive will continue to implement the Programme for Government, to Romanians' benefit, in the context of ensuring the economic balance designed to achieve a sustainable development of Romania, through measures that will lead to the increase of investment and an efficient allocation of resources' stated Prime Minister Viorica Dancila.

The Government further aims at stimulating the sustainable economic growth, supporting investment, improving and simplifying tax legislation following the dialogue with the business sector, modernizing and improving the activity of the tax administration, with a view to increasing the revenues' collection.

Also attending the meeting were Public Finance Minister Eugen Teodorovici, the Head of the PM Chancellery Costin Mihalache and ANAF president Mirela Calugareanu.