The National Bank of Romania has published the 2024 Annual Report, which was reviewed and approved by the NBR Board of Directors and submitted to the Romanian Parliament in accordance with the provisions of Law no. 312/2004 regarding the Statute of the National Bank of Romania.
The publication contains information related to the main areas of activity of the central bank (monetary policy, financial stability, regulation, authorization and prudential supervision of financial institutions, bank resolution, cash issuance, financial market infrastructures, and management of international reserves), explaining the dynamics of economic activity against the backdrop of domestic and international macroeconomic developments in 2024.
The report also presents the financial statements of the National Bank of Romania as of December 31, 2024.
Romania is redefining its macroeconomic balance and financial stability strategy, according to the NBR’s 2024 Annual Report.
The year 2024 was a time of multiple economic tests for Romania: modest economic growth of only 0.8%, coupled with the highest budget deficit in the EU at 9.3% of GDP, and a significant deterioration in the current account deficit, which rose to 8.4% of GDP. These developments reflected a complex mix of internal and external factors: declining external demand, shrinking private investment, and expansionary fiscal measures.
However, the economy was supported by domestic consumption, which grew by 5.6%, driven by an increase in the minimum wage, public sector salary hikes, and easing of lending conditions. On the other hand, private investments dropped by 3.3%, signaling persistent bottlenecks related to bureaucracy, difficult access to financing, and fiscal uncertainty.
Financial Stability: A Strong Point in the Regional Context
One of the most stable sectors in this equation remains the banking sector. Prudential indicators remained at high levels: the total capital adequacy ratio reached 24.9%, and the non-performing loan (NPL) ratio remained low at 2.5%, with a solid coverage ratio (66%). It is also notable that the share of Romanian-owned banks in the banking system became majority for the first time – reaching 51.6%.
Meanwhile, the international reserves increased by €4.5 billion, reaching €70.5 billion, while the gold reserve hit a record high of €8.4 billion, supported by the global rise in gold prices.
Monetary Policy: Between Caution and Adjustment
The monetary policy interest rate was reduced twice in the second half of the year, reaching 6.5%, reflecting a calibrated effort by the NBR to keep inflation under control without compromising financial stability. Despite these efforts, inflation ended the year at 5.14%, above the targeted range but lower than the previous year.
In this context, the NBR continued to maintain open dialogue with the market and authorities, emphasizing the need for a balanced mix of economic policies and efficient absorption of European funds, particularly those under the Next Generation EU program.
Outlook: Fiscal Correction and Structural Resilience
The National Fiscal Adjustment Plan 2025–2031, approved by the EU Council, provides a framework for macroeconomic rebalancing. However, its success critically depends on firm commitments to reforms, administrative digitalization, and improvement of the investment climate.
Romania went through a challenging economic year but demonstrated resilience in key sectors such as the banking system and external reserves. In facing ongoing challenges in 2025, the key to success remains the balance between sustainable fiscal measures, prudent monetary policy, and a coherent long-term economic development strategy.
