The main difficulties for Romania’s credit rating include an expansionary fiscal policy and a deterioration of the current account deficit, according to the annual report of the Moody’s Investors Service, which predicts an increase in the Romanian economy of 3.3% in 2019 and 3.5% in 2020, sustained by strong domestic demand.

Romania’s lending profile (“Baa3”, stable outlook) balances the country’s medium-term prospects for medium-term growth in relation to increasing fiscal and external vulnerabilities, the report said.

The main support of Romania’s credit rating is its economic growth potential of about 4%, one of the highest in the CEE region (Central and Eastern Europe). According to Moody’s, resilient domestic demand will support GDP growth of 3.3% in 2019 and 3.5% in 2020, according to Agerpres.