Romania is currently experiencing a period of stagflation, with inflation exceeding 10.1% and an economic contraction, and mitigating the effects of the recession depends largely on European funds, says Adrian Codirla\u0219u, president of CFA Romania.<\/p>\n\n\n\n
\u201eThis is the most unfortunate combination: recession with high inflation. It is difficult to get out of this situation because monetary policies are less effective due to strongly procyclical fiscal policy. The only thing that can work is fiscal policy, namely the continuation of reforms to reduce the budget deficit by cutting spending. There is no other solution, but we are caught with very large deficits and in unsustainable territory, which is the big problem.<\/em>\u201d explained Codirla\u0219u to Agerpres.<\/p>\n\n\n\n He pointed out that Romania is already in stagflation, given that inflation has exceeded 10% and the economy is showing signs of contraction.<\/p>\n\n\n\n \u201eThe most important indicator we need to look at is the change in GDP in the first quarter of this year compared to the first quarter of last year, based on raw data. There we see a decline of 1.71% quarter-on-quarter. That\u2019s a significant drop. That\u2019s why I don\u2019t see how we could avoid a recession this year,\u201d he added.<\/p>\n\n\n\n In his opinion, the evolution of the economy depends crucially on the absorption of European funds.<\/p>\n\n\n\n \u201eIf we manage to secure European funds, the recession could be mild, with a GDP decline of up to 1%. But we are heavily dependent on these funds; they are essential. The best-case scenario would be a mild recession, below 1%. Without the absorption of European funds, our credit rating is also at risk.<\/em>\u201d, also said the president of CFA Romania.<\/p>\n\n\n\n Romania\u2019s economy contracted by 1.71% in the first three months of 2026 on a gross basis compared to the same quarter of 2025, and by 0.21% compared to the previous quarter, the National Institute of Statistics announced on Wednesday.<\/p>\n\n\n\n At the same time, the annual inflation rate rose to 10.711% in April from 9.871% in March, as services became 13.041% more expensive, non-food goods 12.021% more expensive, and food prices by 7.39%.<\/p>","protected":false},"excerpt":{"rendered":" Rom\u00e2nia traverseaz\u0103 o perioad\u0103 de stagfla\u021bie, cu infla\u021bie de peste 10% \u0219i contrac\u021bie economic\u0103, iar atenuarea efectelor recesiunii depinde esen\u021bial de fondurile europene, afirm\u0103 pre\u0219edintele CFA Rom\u00e2nia, Adrian Codirla\u0219u. \u201eEste combina\u021bia cea mai nefericit\u0103: recesiune cu infla\u021bie ridicat\u0103. Este greu de ie\u0219it din aceast\u0103 situa\u021bie, pentru c\u0103 politicile monetare func\u021bioneaz\u0103 mai pu\u021bin eficient din cauza<\/p>","protected":false},"author":3,"featured_media":6712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[],"class_list":["post-6710","post","type-post","status-publish","format-standard","has-post-thumbnail","category-financiar"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t