The increase in the salaries and the fiscal easing will contribute to the economic growth in 2016. Next year, however, the economy’s growth rate will slightly go down to 3.7%.
In 2015, the real economic growth reached 3.6%, according to the European Commission. It was the highest growth rate in Romania after 2008.
The internal demand will remain the main engine growth for both 2016 and 2017 whereas the exports’ net contribution will stay negative.
The VAT rate reduction from 24% to 20%, as well as the increase in the minimum salary, will stimulate consumption and push the economic growth to 4.2%.
However, inflation will speed up in mid-2016, and this will lead to a slowdown in the consumption growth. The GDP could thus go up by 3.7% in 2017. (source: Romania-insider.com)
