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Citu: Q2 will be the only one this year with economic contraction, the other quarters will have economic growth
The minister of finances Florin Citu stated on Friday night that he expected a contraction of the
economy in Q2 but he states that ‘ the estimates for Romania were much too pessimistic’ and
we will not have a technical recession. Florin Citu was asked on Friday night in a press conference about the data which show that the economy of the euro zone registered in Q2 the worst decline in its history and stated ‘ I have seen the figures and for Europe they are
surprisingly negative. For Romania and other countries they will appear around 14th August. Yes, we are going through a global economic crisis. The estimates are revised in real time’.
The ministry of finance considers that the estimates for Romania were too pessimistic.
We are expecting, of course, an economic contraction in Q2 as the economy was closed during this period. We are expecting this contraction, but at the same time, we expect Romania not to have technical recession. This means that we will not have two negative consecutive quarters the same year. Q2 will be the only one this year with economic contraction, the other quarters will have positive economic growth’ Citu said.
According to him, ‘ in Romania there was a record growth of investments in the first six months’ ‘ I checked the execution for 7 months, you should not that the trend went on, from the signals I have, this is what I am counting on, when I say that the economy performed better than the estimates which I saw until now, but, of course, we will have a contraction in 2020’ Citu stated.
According to Eurostat the economic drop in the EU and the euro zone is the most serious since the moment when the report of this kind started to be given, in 1995.