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After IMF, WB revised in slight drop the prognosis for economic growth of Romaniaat 2.7%

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The World Bank estimates an economic growth in Romaniaof 2.7% this year, up by the prognosis of April and slightly under the advance of2.8% anticipated in June, according to the data revised for Europe and Central Asia.

 

The International Monetary Fund revised the estimate regarding the growth of GDP of Romania at 2.4% for this year, against a growth of 2.8% estimated in June. Similarly as in the case of WB, IMF had in April a prognosis of lower economic growth of 2.2% but in the case of negotiations with the Romanian authorities used an interval of 2.2-2.5%.

 

For the region Europe and Central Asia, WB anticipates a modest economic growth, of only 1.8% this year and 2.1% next year, much under the estimates of June, of 2.5% and 3.7% respectively.

The region has major challenges, and the perspectives of economic growth are uncertain. The tensions in Ukraine had a clearly negative effect on the economy of the country. But there are many structural issues in the region which existed even before the crisis and had to be solved in emergency’ stated Laura Tuck, the vicepresident of WB for emerging Europe and Central Asia.

 

The WB estimates an economic drop of 8% in Ukraine this year, as a result of the crisis through which the country passes since the beginning of the year, against the contraction of 5% previously estimated. For the future year, the bank anticipates a drop of GDP of 1%.

 

The economy of Russia which annexed in March the Ukrainian region of Crimea will have a weak evolution but better than that of Ukraine with an advance of the GDP of 0.5% this year. ‘ The economic growth in the region is under that in the parts of the world. For the future, the authorities should concentrate on the improvement of the governance and the investment climate, the consolidation of competitiveness, the insurance of the stability of the financial sector and the keeping of a stable macroeconomic framework’ Hans Timmer, the head- economist of WB for emerging Europe and Central Asia said.

 

The countries in the Community of Independent States had increased difficulties as a result of the crisis in Ukraine and the economic stagnation in Russia but the neighbouring economies were not affected until now, according WB.

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