Romania’s public deficit shrinks by 31% y/y to 2.9% of GDP in January-August

Romania’s public deficit decreased by 31% year-on-year during the first eight months of the year, reaching 2.9% of GDP. The government aims to conclude the year with a deficit of 6.2% of GDP, a reduction from the 7.6% recorded in 2025 and 8.7% in 2024. Market analysts anticipate that actual budget execution may result in a final deficit figure lower than the government's 6.2% projection.

As fiscal consolidation efforts continue, Romanian authorities are currently undergoing consultations with S&P Global Ratings ahead of an expected review on October 2. While officials express confidence that the country’s credit rating will not be downgraded, analysts note that the lack of a fully empowered government creates uncertainty regarding the nation's medium-term fiscal policy and the trajectory of the 2027 budget.