Analysts: Romania is facing a soaring budget deficit

“We could see a doubling of the budget deficit in nominal terms, considering we have a forecast of 5.5 percent of GDP,” said Nicolaie-Alexandru Chidesciuc, Senior Economist of ING Bank Romania.

Ionut Dumitru, Chief Economist of Raiffeisen Bank Romania, also estimated that the budget deficit will exceed by far the three percent of GDP threshold.

Lucian Anghel, Banca Comerciala Romana (BCR) lender's Chief Economist, said that the budget deficit would not be a major problem if it is based on real economy investments.

The European Commission revised its forecast for Romania’s budget deficit to 3.4 percent of GDP in 2008 from 2.9 percent, and to 4.1 percent of GDP in 2009.