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Predictions for Romania’s economic growth

Written by: Bridgewest

Fiscal_obligations_for_individual_taxpayers.jpgRomania’s government plans to register a medium term economic growth of 5 - 6% per year. The target will be fulfilled by maintaining fiscal discipline in order to reach other European countries and recuperate the existing shortcomings. The country’s economic growth will be encouraged through a set of measures that aim to sustain the business environment in Romania.
 

Fiscal consolidation in Romania

 
The government aims to record an annual fiscal growth of 5 - 6 percent. Romania’s Minister of Finance, Ioana Petrescu, has shown that Romania recorded the second largest fiscal consolidation in the European Union, after Greece. The analysed period started in 2009, when the country’s structural deficit was over 9% of the gross domestic product (GDP), a value that has reached 1,7 percent now. These results were possible by maintaining fiscal discipline.
 
The Romanian government has recently made important changes, such as reducing the social security contributions by 5% for the employers, removing the taxes for re-invested profit and dropping the special tax for construction from 1,5% to 1%. Also, the state has helped in the creation of nearly 13,000 workplaces. 
 
The country has also taken steps for reducing tax evasion, through reducing the amount allowed for cash payments, encouraging card payments and creating a new Anti-fraud Division within the National Agency for Fiscal Administration. 
 

Economic growth in Romania

 
The Romanian government anticipates that the country will record an economic advance of 2,5% during the remainder of this year. Last year, the growth was larger, having a value of 3,5%. The International Monetary Fund estimates that Romania will record a larger GDP increase by 2,4% this year and by 2,5% next year.
 
One of the most attractive fields for foreign investors in Romania is the IT sector. Romania enjoys the status of a regional center for IT professionals and the Romanian workforce is highly qualified to work for some of the most important IT companies that have opened offices in Romania.
 
The IT market is expected to record an increase by 9.1%, surpassing most of the neighboring countries. If you want to invest in Romania, our accountants in Bucharest can offer you professional services