Since the financial crisis of 2008, most European governments have started to live more and more on debt. To cover their expenses and budget holes, states began to borrow more and more, and the public debt increased.
The Romanian Government BuildingPhoto: Inquam Photos / Octav Ganea
The two years of the pandemic came as a new blow. Overlaid with multiple crises at European level, these years came with new additional expenses for governments, which pumped money and incentives into the economy and into the population to overcome the blockage caused by the health crisis.
Romania joined the European trend, but it is not bad in this chapter of indebtedness. Although the government debt increased by more than ten percent, from 35.2% of GDP in 2019, to 48.9% in 2021, Romania still has one of the lowest government debts in the European Union states, according to the Fund’s data International Monetary.
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