EBRD ups economic growth forecast for Romania

The European Bank for Reconstruction and Development (EBRD) has significantly improved its estimates on Romania's economic growth in 2021, in line with higher expectations for the whole region where the financial institution is active.

The EBRD now forecasts a 7.2% increase for Romania's GDP this year, compared to a 6% advance expected in June, according to a report published on Thursday. However, the EBRD cut its forecast on Romania's economic growth in 2022 by 0.6 percentage points to 4.4%.

"Overall, GDP is expected to grow by 7.2 per cent in 2021. In 2022, the Recovery and Resilience Facility should start boosting investments while gradually improving net exports, in line with a slowdown of private consumption compared to recent years and expected fiscal consolidation, could translate into GDP growth of 4.4 per cent," reads the EBRD report.

"The main downside risk to the forecast is the evolution of the pandemic, as the vaccination rate is the second-lowest in the EU," the same source mentions.

(Photo source: Dreamstime.com)