Erste Group projects 4.2% GDP growth for Romania’s economy this year

Austrian Erste Group expects Romania's GDP to grow by 4.2% this year - which would fully offset last year's 3.9% decline.

The forecast is close to the Government's official projection (4.3%), which in its turn is seen as feasible by both Romania's National Bank (BNR) and the Fiscal Council. Erste Group, which is active in most of the region's markets, expressed optimism for the Central and Eastern Europe (CEE) economies in general.

"I am confident about the year 2021. We expect a sharp recovery in the region's economies this year and with it a change of sign, from minus to plus," said Bernd Spalt, CEO of Erste Group.

According to the quoted source, this optimism regarding the economic recovery is based, among other things, on the fact that the vaccination rate of the population increases moderately but constantly.

GDP growth rates in the last quarter of 2020 in some CEE countries also support the optimism: the economies of Hungary, Slovakia, and Romania experienced unexpected growth in the fourth quarter of 2020 compared to the previous quarter, despite the negative impact of quarantine in these countries.

Based on these economic forecasts, Erste Group expects to achieve a better financial result in 2021. "We will also see a clear change in the dynamics of our profit evolution," said Bernd Spalt.

(Photo: Diony Teixeira/ Dreamstime)