The economic activity in Romania deteriorated in March to 88% of the activity of a normal pre-pandemic month, down from 92% in February, according to a report by BCR quoted by Bursa.

The index had previously improved from 83% in December to 85% in January and 92% in February.

The restrictions imposed amid the third wave of the COVID-19 pandemic caused the slowdown in March, the report explains.

The report invokes the marginal improvement, in Romania, of the economic sentiment index (ESI) in March, of 0.5pp - compared to the steep 7.6pp average increase in the European Union.

BCR also highlights the expectations expressed by Romania's National Bank (BNR) board members.

The minute of the BNR's most recent monetary policy meeting shows that the economic recovery is likely to decelerate sharply in the first half of this year, after the performance well above the expectations seen in the last quarter of 2020.

The BNR still expects that the GDP returns to pre-pandemic levels around the middle of this year.

(Photo: Diony Teixeira/ Dreamstime)

andrei@romania-insider.com