WB expects Romania’s GDP to shrink by 5.7% this year
Romania’s GDP will contract by 5.7% this year, and recover by 5.4% next year, shows the World Bank’s Global Economic Prospects report.
The updated forecast marks a steep 9.1pp downward revision for this year’s GDP forecast, compared to the last WB projection for Romania dated January.
The WB has also revised the projection for Romania’s economy’s dynamics next year, from 3.1% to 5.4%.
WB’s forecast is slightly more optimistic compared to the European Commission’s Spring Forecast (May 5) that foresees steeper decline this year (-6%) and slower recovery (+4.1%) in 2021. The European Bank for Reconstruction and Development on May 12 projected a 4% GDP decline this year for the local economy with a rebound of the same magnitude in 2021.
In the meantime, the Government still has to update its 2% GDP contraction scenario used for the first budget revision.
editor@romania-insider.com
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