BUCHAREST, May 10 (Xinhua) -- The European Bank for Reconstruction and Development (EBRD) on Wednesday increased its projections for Romania's economic growth to 4 percent in 2017.
It is the highest growth level among the European states in which the financial institution operates. In its previous report, released in November 2016, the bank projected that Romania's gross domestic product (GDP) will grow by 3.7 percent in 2017.
For 2018, the bank predicts a GDP growth of 3.5 percent for the eastern European country.
"Consumption will continue to stimulate growth in 2017 and 2018, backed by a rise in the minimum income and wages in the public sector, which are part of the electoral promises of the ruling political party," said the European bank, adding that private investment will be supported by the cancellation of the construction tax and the low cost of funding.
Romania's National Prognosis Commission, an analysis unit within the finance ministry, late January significantly revised up the local economy's growth forecast from 4.3 percent to 5.2 percent for 2017 and from 4.5 percent to 5.5 percent for 2018.
The government also based its budget for the current year on an estimated economic growth of 5.2 percent. Meanwhile, many international financial institutions, including the International Monetary Fund (IMF), also upgraded its economic growth forecast for Romania in their latest reports.
