OECD Economic Surveys: Romania 2024
Romania’s economy withstood significant adverse shocks in the wake of Russia’s invasion
of Ukraine and the ensuing energy crisis. Tackling high inflation is the immediate
task for macroeconomic policy. Fiscal consolidation would complement restrictive monetary
policy in keeping demand at sustainable levels. Greater tax revenues are needed to
stabilise the public debt burden while funding priority spending – including on critical
infrastructure, pensions, health care and the education system. Productivity growth
is a powerful engine for lifting living standards but sustaining it will require a
sound investment climate backed by strong competition, predictable policymaking, financial
inclusion and effective controls against corruption. Romania’s Recovery and Resilience
Plan is helping drive reform. More policy focus is needed on addressing disparate
socio-economic outcomes within Romania and to lift employment among groups underrepresented
in formal work, including women. Faster progress is also required to decarbonise the
economy by 2050. Romania needs more renewable power and big energy savings to reduce
fossil fuel use. Energy-efficient buildings, better transport systems and consistent
price signals for abatement are also needed. Efficient and fair policies can limit
costs from the net-zero transition, shield affected communities from hardship, and
prepare people for changing climates.
SPECIAL FEATURE : DECARBONISING ROMANIA'S ECONOMY
Published on March 12, 2024 Latest available edition in: French
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