POST Online Media Lite Edition


Romania's public debt jumps by 3.3% of GDP in December

Christian Fernsby |
Romania's public debt reached RON 498.3 billion (EUR 102.3 bln) at the end of 2020 after it leaped by RON 34.4 bln (over EUR 7 bln) in December alone.

Article continues below

Topics: ROMANIA   

The debt-to-GDP ratio rose to 47.7% of GDP at the end of 2020, after a 3.3pp advance in the last month of the year.

Last year, Romania's public debt increased by RON 125 bln (EUR 25.6 bln), and the debt-to-deficit ratio advanced by 12.4pp from 35.3% at the end of 2019.

Romania's economy decreased last year by 3.9% compared to 2019, a better result than previous estimates, and the budget deficit widened to 9.7% of GDP.

This year's moderate fiscal consolidation is likely to keep the public deficit at an elevated level of above 7% of GDP, which will predictably bring the public debt up to over 50% of GDP.

On the upside, the robust buffer announced by prime minister Florin Citu and the positive GDP growth are cushioning the pressure generated by the large financing needs.

What to read next

Egypt’s government debt to GDP declines to 88.4% in Q2
World Bank lifts Romania's economic growth forecast to 4.4 percent
Greek investment and exports to Romania increasing