„Румънски“ икономически сценарий – що е то?
The „Romanian“ Economic Scenario – What Does it Mean?

Author(s): Emil Kalchev
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Economic policy, Public Finances
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Romania; GDP; budget balance; current account
Summary/Abstract: The Romanian economy is shifting from a prolonged period of expansion to a phase of deterioration, marked by slowing economic activity, widening twin deficits, persistently high inflation, and other vulnerabilities. The weak GDP dynamics are driven by the negative contribution of net exports and investment to growth. Given the country’s relatively low competitiveness and its dependence on imports, fiscal expansion is amplifying pressures on the current account. This economic trajectory — a combination of chronic fiscal imbalances, a widening current account deficit, political turbulence, elevated inflation, rising public debt, and slowing economic growth — serves as a warning about the risks of prolonged deficit-financed excess consumption, fuelled by unjustified rapidly increasing pensions and public sector wages.

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