State financial reserves, declining: minus 1.1 percentage points in GDP in the first quarter
Money, economy, perceptions and realities. Photo Dreamstime.com
The financial assets of the public administrations expressed as a share in the gross domestic product (GDP) decreased in the first quarter of 2025 by 1.1 percentage points, compared to the similar period of 2024, reaching 25.7%, the data of the National Bank of Romania shows, according to Agerpres.
The dynamics of the indicator was mainly determined by the decrease of the availability of cash and deposits whose reduced stock (-9.1%), reaching a level of 6.5% of GDP, in the political and economic context of the electoral period.
The stock of credits granted by public administrations has increased (+2.4%), reaching the level of 2.1% of GDP (decreasing by 0.1 percentage points compared to the first quarter 2024). The participation and actions/units of the investment funds were maintained at the same level of 9.8% of GDP.
Other accounts to receive (taxes, taxes, social contributions, commercial debts, amounts due by the economic agents to public authorities and external claims) have increased by 0.2 percentage points, up to 7.1% of GDP.
Increasing public debt, fueled by bond shows
The financial commitments of public administrations, expressed as a weight in GDP, increased by 3.7 percentage points, reaching 60.4% at the end of the first quarter.
“This evolution was mainly determined by the increase of the stock of the debt nature (+2.8 percentage points during the analyzed period), up to 41.2 percent of GDP, as a result of the bond programs launched by the Ministry of Finance on the internal and external market, in order to financing the budget deficit and the refinancing of the Government,” underlines the NBR.
During the mentioned period, the stock of the employed government credits registered an increase by 23.7%, compared to the first quarter, on account of the non -negotiable government securities intended for the population within the Tezaur program. In relative terms, the indicator increased by 1.2 percentage points, up to 8.8% of GDP.
Other accounts to pay reached a level of 9.4% of GDP.
The public administrations sector registered a net financing requirement of 2% of GDP in the first three months of 2025, compared with 2.4% of GDP in the first quarter 2024. The central administration recorded a net financing requirement of 2.3% of GDP (compared to 2.6% of GDP in quarter I 2024).
Local administrations registered a net financing capacity of 0.3% of GDP (0.2% of GDP in the first quarter 2024). The social security administrations registered a net financing capacity of 0.04% in the first quarter 2025 (compared to 0.1% of GDP in the first quarter 2024).
