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Romania is an upper-middle income country of 19.5 million people. The country joined the European Union in 2007, just before experiencing a deep recession in 2009-10 with significant consequences in terms of non-performing loans. The currency in Rumania is the leu (RON). During the last decade, Romania has experienced significant growth, as well as debt consolidation. As a result, the country entered into the COVID-19 crisis with relatively limited public and private debt levels. Romania has weathered the economic shock quite successfully. The recession was unavoidable, but the country was among the firsts in the region to recover pre-Covid GDP level.

The lack of political stability is still among Romania’s key risks, since it increases the likelihood of fiscal slippage. The business climate suffers from a weak judiciary and corruption, inhibiting the growth potential through a lack of productivity gains. Among weaknesses, twin (fiscal and external accounts) deficits are structural.