May 7 (SeeNews) - Romania’s economy is expected to expand by a real 3.3% in 2019, the European Commission said on Tuesday, lowering its February projection of 3.8% growth.
The projection for Romania's gross domestic product (GDP) growth in 2020 was lowered, too - to 3.1% from 3.6% forecast in November, the Commission said in its Spring 2019 Economic Forecast report.
"Real GDP growth is forecast to ease to 3.3% in 2019 and 3.1% in 2020. Private consumption is set to remain strong in 2019, as nominal wages continue to show strong growth," the Commission said.
Both internal and external uncertainties could take a toll on economic growth, the Commission stressed.
Real GDP growth eased in 2018, after a high peak in 2017 and growth was driven by private consumption with investment and net exports both exerting a negative influence. The current account worsened further. The soft landing is set to continue in 2019 and 2020 with the current account deficit projected to continue to widen.
The budget deficit is forecast to continue increasing, driven by expenditure on public wages and pensions, the Commission added.
The EU's executive body also stressed that uncertainty and unpredictability of public policies may also have a negative effect on consumption and investment, hampering growth.
The projection of the Commission is much lower than the 5.5% economic growth rate expected in 2019 by the finance ministry, but higher than the 3.1% projected by the International Monetary Fund last month.
Romania's economy expanded by 4.1% year-on-year in 2018, compared to a growth rate of 7% in 2017, provisional data from the country's statistical board showed in April.
(1 euro = 4.7586 Romanian lei)