March 21 (SeeNews) - French fintech company iBanFirst said on Thursday that it expects Romania's economy to grow by 2.7% in 2024, driven primarily by public investment and private consumption.
While economic growth is expected to be moderate, it represents a notable performance considering the current macroeconomic conditions across Europe, the company said.
The growth of the country's gross domestic product (GDP) will stabilise to 4% per year on average in the coming decade, said iBanFirst's country manager for Romania, Alin Latu.
Concerns still exist regarding Romania's high budget deficit, currently at 5.6% of GDP, as it could pose a long-term risk to the economy. Inflation also remains a focal point, with January figures indicating a sharp increase to 7.4%. iBanFirst analysts expect inflation to hover around 5% by end-2024, posing challenges to monetary policy.
The company forecasts stability in the euro/leu exchange rate with fluctuations within a narrow range throughout the year. However, the U.S. dollar/leu rate is forecast to experience an upward trend, driven by geopolitical factors and the resilience of the U.S. economy.
(1 euro=4.97343 lei)