Given the extremely busy election calendar from 2024, it is possible to further complicate the correction of the excessive deficit in the event of new expansionary measures or the continuation of some of those already in place. Significant deviations from the budget deficit adjustment trajectory could have a direct impact on the sovereign rating, according to the BNR in the Inflation Report published on Friday.

In addition, the correction of the current account deficit may also be at risk with all the consequences it may have for the orderly financing of the twin imbalances in the economy, the document also states.

The heads of the central banks also note that we are observing “obvious difficulties” in reducing the budget deficit in accordance with the intended goal. “A tentative set of adjustment measures has taken shape ahead of the inflation report, but it remains difficult to assess how sufficient they will be to ensure compliance with this year’s adjustment milestone,” the report’s authors said.

They indirectly confirm the existence of the phenomenon of “greedflation” in the economy, noting in the report: “The maintenance of an accentuated inflationary environment could motivate a further increase in the profit margin of companies.” In addition, and in parallel, new inflationary trends may increase, which will negatively affect the purchasing power of the population. Against the background of the erosion of the latter, claims regarding a more active salary increase, differentiated according to the most affected branches of activity, are not excluded, the authors of the Report conclude.