RSS
Fiscal Council president: 2016 could be peak of economic growth
The 4% economic growth in 2016 could be a peak which will go down to 3.5% in 2017, considering the lack of investments, public ones in particular, while increase based on consumption alone is not sustainable on a long run, according to Ionut Dumitru, the president of the Fiscal Council.
“We expect a 3.7% economic growth this year an 4% next year. I consider that next year is a special one. We have a strong manifestation of fiscal stimuli, with the VAT reduction from 24% to 20%, Dumitru said at a press conference.
He does not consider the 4% increase will repeat in the following years, because of the lack of investments and an economic growth potential which has not improved.
“For instance, the National Prognosis Commission sees an economic growth leading to 5% in the next years and GDP increase of over 4% at a certain moment. I think this is not plausible because we did not have investments. There has not been a country growing on consumption alone,” Dumitru said.
He considers that, in the absence of investments, especially public ones, the year 2016 may be a peak of economic growth which will go down to 3.5% in 2017.
“The message is that 4% economic growth is already too much for the present economic context,” Dumitru said.