S&P Improves Romania’s Outlook from Negative to Stable after 7 Years

Very good news for Romania: Standard & Poor’s improved Romania’s outlook of the governmental debt from negative to stable. It is the first improvement of the kind since 2013, which is quite a performance for the Romanian Government and a confirmation of the measures taken to stabilize the economy after the crisis.

The reasons for the rating agency to improve the ratings, as communicated by S&P, were the capping on pensions, the decrease of the budgetary deficit and the perspective of a stable public debt on a long term. At the moment, the public debt in Romania is on course to reach 50% by 2023, as planned by the Romanian Government.

Florin Citu, the Romania PM, reacted on Facebook after learning the news:

Fantastic news for Romanians! We promised, we delivered. Romania is appreciated by S&P with a change of the outlook from negative to STABLE. We took and we’ll continue taking the best measures for the economy.

Romanian PM Florin Citu on S&P changing the outlook for Romania

The Standard & Poor’s experts expect an average growth of the GDP of 5% for 2021 and 2022 in Romania. In fact, this percentage is close to the one mentioned by the experts from the IMF, who said that Romanian economy will have a 6% growth this year. The moderate estimations of the World Bank mention only 4.3% growth, which is also the percentage used by the government to draft this year’s budget.