EBRD downgrades estimates of Romanian economy in 2023, 2024

The European Bank for Reconstruction and Development (EBRD) worsened the estimates regarding the evolution of the Romanian economy in 2023 and 2024, according to a report published on Wednesday by the international financial institution.

According to the latest forecasts of the EBRD, Romania’s GDP should register an advance of 1.8% this year, after the May forecast indicated an expansion of 2.5% in 2023. Growth should accelerate to 3 .2% next year, compared to a level of 3.5% estimated in May, the report states.

The EBRD expects the economy to grow by 2.4% in 2023 and 3.2% in 2024 in its region of activity

The European Bank for Reconstruction and Development (EBRD) expects the advance of the economy in its region of activity – which covers about 40 economies – to be 2.4% in 2023 and 3.2% in 2024.

Gas consumption in emerging Europe fell by more than 20% in the winter of 2022/2023, after reduced supplies from Russia pushed up energy prices. But even if the price of gas in Europe has returned to the level of the beginning of 2021, it remains almost four times higher than the price of gas in the US, according to the EBRD report published on Wednesday. “Countries are on a disinflationary trend, but it will take longer until they return to their inflation targets,” Beata Javorcik, EBRD’s chief economist, told Reuters.

European industry has reduced activity in gas-intensive sectors such as construction materials, chemicals, metals and paper, while increasing activity in sectors with less CO2-intensive production. carbon, such as electrical equipment, car manufacturing and medicine production.

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