Romania’s economy grew by 4.8 percent in 2016, a new post-crisis high and one of the fastest in the EU. The performance was fueled by an expansionary fiscal policy and labor market improvements which, combined with an increased support to vulnerable groups, contributed to poverty reduction. Growth and poverty reduction are expected to remain solid in 2017 and 2018, but risks to the outlook have increased. Fiscal policy has turned pro-cyclical and there is a risk for the budget deficit to exceed 3 percent of GDP in 2017. Read more...