The Fitch agency sees favorably the economic policy of the Government from Bucharest. Fitch revised Romania’s country outlook from negative to stable

By RBJ
The Fitch rating agency reconfirmed Romania’s sovereign rating and revised the country’s outlook from negative to stable, announced the Ministry of Finance (MF). The decision is determined by the stabilization of public debt and the implementation of policies aimed at ensuring a gradual fiscal consolidation, as well as political stability and the reduction of risks regarding the war in Ukraine and an energy crisis. According to the MF, this is the first positive change in Romania’s rating outlook operated by Fitch since April 2020.
“On March 24, 2023, the Fitch rating agency reconfirmed Romania’s government debt rating at BBB-/F3 for long- and short-term foreign currency debt and revised the country’s outlook from negative to stable. This is the first positive change in Romania’s rating outlook operated by this agency since April 2020,” the Ministry of Finance said.
According to the same source, the decision to review Romania’s rating outlook is supported, in the agency’s opinion, by the stabilization of the public debt and the implementation of policies aimed at ensuring a gradual fiscal consolidation, as well as by the political stability in our country and the reduction of risks regarding the war in Ukraine and the energy crisis subsequent.
“The Fitch Ratings decision is proof of the international recognition of the Romanian Government’s agenda to ensure fiscal-budgetary consolidation and the confirmation that the measures already adopted were the correct ones, necessary for our country and extremely expected by all our external partners. At the same time, we must the agency’s positive estimates regarding Romania’s economic growth potential in the medium term were also noted”, said the Minister of Finance, Adrian Câciu.
In the assessment carried out, Fitch mentions both the economic resilience shown by Romania in 2022, as well as the political stability that made it possible to address the crisis generated by the war in Ukraine and the energy crisis, states the Ministry of Finance.
In the agency’s opinion, Romania’s economy will register an increase of 2.3% in 2023, respectively 3% in 2024, given that our country will benefit from important European funds both from the Multiannual Financial Framework 2021-2027 and from the Recovery and Resilience Mechanism (PNRR).
“The main factors that could individually or collectively lead to the improvement of the country rating or the outlook are the firm stabilization of the share of public debt in GDP in the medium term and the reduction of the fiscal deficit, as a result of the effective implementation of the government’s fiscal strategy, as well as the reduction of risks regarding external financing through the structural improvement of the current account deficit position, which would lead to a decrease in external indebtedness and/or to the improvement of external reserves”, emphasizes the Ministry of Finance.