about us | newsletter | contact | archive | members area
Nicolae Ghibu, Certsign
Regulations will come gradually and will cover all areas»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   INFRASTRUCTURE   |   GREEN   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

The World Bank: the economic growth of Romania will accelerate at 4 per cent in 2016

The World Bank estimates that the rhythm of economic growth of Romania will accelerate at 4 per cent in 2016, supported by the expansionist fiscal policy and the reforms on the work market.

2016-04-11 14:35:42

In the same time, the WB warns against the risk of Romania getting into the procedure of excessive deficit due to the revision of the unitary law for public payment, according to the new report of the World Bank for Europe and Central Asia. According to the World Bank the measures of fiscal relaxation for 2016 cumulated with the salary increase in the public sector will simulate private consumption, while the low inflation and the relaxed monetary policy will help lending and could have an impact on private investments. Even if acceleration of the consumption would lead to the aggravation of external imbalances, the World Bank considers that the deficit of current account will be under control.

Inflation will be in the negative territory in June 2016 when the effect of VAT reduction for food will wear off and it will increase gradually up to 1.4 per cent at the end of the year. Otherwise, the budgetary deficit will significantly increase in 2016 and 2017 to3 per cent as a result of the reduction of taxes and the payment increase in the public sector. "In the absence of amendments to the taxation policies, which seem unlikely in an electoral year, the government will have to limit the current expenditure, to reduce investments and to improve the tax collection to avoid getting in the procedure of excessive deficit," the World Bank says.

The international financial institution warns about the risks are important.' Fiscal risks on a short term must be managed with attention in the context of the foreign environment which is uncertain and the general elections to come, programmed for the autumn of 2016. The revision of the public payment law could increase the pressure on the expenditure and amplifies the risk that Romania will get back into the procedure of excessive deficit' the WB report says.

In this context, the WB recommends that structural reforms concentrate on the sector of energy, the state run companies and the improvement of the quality of public expenditure. Moreover, it is necessary to resume the efforts to improve participation on the work market, as the rate of unemployment is high among young people and the low-qualified people.



COMMENTS
'.$nr_comm.' comment:
'; } else { echo 'There are '.$nr_comm.' comments:
'; } while ($row = mysqli_fetch_array($result, MYSQLI_ASSOC)) { echo '
'.$row['nume'].": on ".$row['data']."
"; //echo str_replace('\n','
',$row['comentariu']); echo nl2br($row['comentariu']); echo '
'; } ?>

0 Comments  |  6895 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...

 
 
   
advertising

advertising

advertising

More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

2 Comments

Catrina, MCSI: Romania is ready to roll up its sleeves and work during the presidency of the EU Council

Romania is ready to roll up its sleeves and work during the presidency of the Council of the European Union (EU), said Maria Manuela Catrina, State Secretary at the Ministr...

9 Comments

Two billion youth risk of being left behind in the Fourth Industrial Revolution workforce, says Deloitte

Almost two billion youth worldwide risk of being left behind in the Fourth Industrial Revolution (Industry 4.0) workforce, which is changing at an increasingly rapid pace a...

1 Comment

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

3 Comments

Revolut gets European banking license

Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has fi...

1 Comment

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...

1 Comment

Dacia receives 115.8 million RON in state aid from the Finance Ministry

The Romanian Finance Ministry has signed five more grant agreements under the state aid scheme, and among the beneficiaries are Automobile Dacia, with RON 115.8 million.

1 Comment