Income convergence was fast before the pandemic
Poverty and income inequality remain elevated
Romania’s working age population is decreasing fast
The new pandemic wave has gained momentum while the vaccine rollout is slow
The pandemic triggered a sizeable economic contraction, but the rebound is strong
The labour market has been resilient and inflationary pressures remain strong
Business investment has stalled
Export performance has been solid so far
Europe is Romania’s main export destination
Macroeconomic vulnerabilities have receded since 2007
Fiscal and current account deficits have widened
Romania should make the most out of the EU Funds
Credit growth has recovered
Public debt is moderate, but on an unsustainable path
The country credit risk premium remains elevated
The 2019 reform would have improved adequacy of the pension system, but is unsustainable
Tax revenue is low by OECD standards
Improving VAT compliance can bring large revenues
Indicators suggest the banking sector has remained sound
Room for productivity gains is large
Corruption is still perceived as high
Regional disparities are high with pockets of poverty in rural areas
Romania is among the EU countries with the largest Roma population
The minimum income benefits do not sufficiently protect against poverty
The socioeconomic status has a large impact on educational outcomes
Improving education outcomes requires increasing spending
Health indicators suggest large scope for progress
Low spending is associated with poor health outcomes
Unmet medical needs must be addressed
Air pollution is high and contributed to a large number of premature deaths
The economy has become relatively greener
Energy affordability is an important challenge