Romania will meet the European Union’s budget deficit target of 3% of GDP in 2017, the finance ministry said on Friday in response to an Eurostat document showing the country had a budget gap of 3.2% in the first quarter, local media reports
“Eurostat’s 3.2% of GDP value is calculated on the seasonally adjusted ESA (European System of Accounts) standard, reflecting the trend of the budget deficit recorded in previous quarters in 2016 and based on GDP in the first quarter, the time in which GDP usually has the lowest nominal value for the year,” the finance ministry said in a press release.
Romania’s GDP totalled 146.4 billion lei ($37 billion/ 33 billion euro) in the first quarter of 2016, while in the fourth quarter, GDP was 228.9 billion lei – the highest value for the year, the ministry said.
On Thursday, the European Office of Statistics (Eurostat) said that Romania posted the highest rate of quarterly growth of government deficit in the first quarter of the year among EU member states, of 1.4 percentage points. Romania’s budget deficit widened from 1.8% in the last quarter of 2016 to 3.2% in the first three months of 2017.
The government deficit of Romania in the first quarter of this year was three times higher than the EU average of 1.1 % of GDP. Among the EU member states, only France had a higher deficit than Romania, of 3.3% of GDP.
Source: Finance Ministry and Eurostat press release.