Recent fiscal measures will push inflation up to 8% and the economy could stagnate or fall into recession, warns ING Bank Romania.

ING Bank Romania predicts that fiscal measures to reduce the budget deficit, including VAT and tax hikes, will push inflation to 8%. With falling consumption and sluggish economic growth, mild recession is becoming a possibility. Consumer confidence has fallen and economic risks are rising, which could prompt the National Bank to revise its inflation forecast. Economic growth projections are pessimistic with risks of stagnation or contraction.