The growth of Romania’s economy is solid, but the risks are high, according to the study dedicated to Romania “Economic Survey of Romania”, published by the Organization for Economic Cooperation and Development (OECD).

The COVID-19 pandemic has halted the rapid improvement in living standards. Although the recovery is solid, the recurrence of the virus worsens the prospects for economic growth, because the vaccination rate is low, the study says.

“Before the pandemic, Romania’s economic performance was impressive. In less than 20 years, Romania has halved the gap in GDP per capita compared to the OECD average, from almost 70% to about 35%. The risk of poverty or social exclusion has dropped to 30% in 2020, from about 50% 30 years earlier,” according to the OECD document.

Romania must make the most of European funds, taking advantage of the opportunity offered by the EU NextGeneration plan, through which it will receive large amounts in the form of grants, which will be used to finance the National Recovery and Resilience Plan, the report’s authors say. The effective implementation of these plans will require the strengthening of administrative capacity, especially in terms of project supervision, while the associated structural reforms are implemented.