Banca Transilvania expects quick, robust post-COVID recovery in Romania
Romania's economy is already recovering after the lockdown shock in April, and the GDP will return next year to the level reached in 2019 (EUR 220 billion), according to Andrei Radulescu, chief economist of the country's biggest bank -…
Romania Insider · Journalist
· Updated · 1 min read
Romania's economy is already recovering after the lockdown shock in April, and the GDP will return next year to the level reached in 2019 (EUR 220 billion), according to Andrei Radulescu, chief economist of the country's biggest bank - Banca Transilvania, Ziarul Financiar reported.
He expects average economic growth of 2.5% per year for 2020-2022.
His forecast is among the most optimistic voiced by independent analysts over the past couple of months after the coronavirus outbreak in Europe. The European Commission forecast 6% GDP contraction for Romania's economy this year and incomplete recovery (+4.2%) in 2021.
The interest rates on local currency loans will decline, and the exchange rate will remain stable; therefore, we witness a historic chance for a new investment cycle, Radulescu commented.
"As a result of this crisis, global financing costs will remain at historic lows for several years to come. It is the best time to invest in the economy. The shock induced by the pandemic has led to increased flexibility in the labor market. We must focus on the consumption of goods and services made in Romania, we have the chance to level the external balance," said Andrei Radulescu in an interview for ZF Live.
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