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EcoMin Valeriu Popescu: the losses in economy will be very big
The minister of economy Virgil Popescu considers that the losses in economy will be very big due to the general crisis in coronavirus pandemics which imposed the decree of the state of emergency in Romania but an evaluation in this sense can be made by the National Institute for statistics and the National Commission for Strategy and Prognosis.
‘It is very complicated to have an estimate of what is going to happen in the economy at the final of the 30 days of emergency state, as we do not know what the evolution of the infection is going to be.If there is no dramatic boost, as it happens in other European countries, then we can limit to these losses. Think, if many production units close down, then the payments will be zero. That is why the prognosis is very difficult to make. I would not dare to give you figures. The people in the Statistics and Prognosis institute could do it on mathematical models, but depending on the statistics model of virus spreading they could do it better.We are in the ministry of economy can do, possibly, an analysis of the sectors which close down, and then to give you an estimate. In any case, the losses in the economy will be very important’ Virgil Popescu said at Realitatea TV.
Asked at what the budgetary deficit would get and if it will go beyond 5%, the minister of economy stated that this depends on how long the crisis lasts, adding that at present it is no longer the matter of budgetary deficit at the level of the EU.
"At the Ministry of Economy I have no data as regards what will happen within three months (...) What I can tell you is that from my estimates, from the talks with the Public Finance Minister should this crisis last one or two months, we could see a budgetary deficit around 5 percent. If it lasts more, it is hard already to estimate where it will place us. Not even 5 percent is a strong figure, yet it is a possible one. But, in two months, in three, four months the budgetary deficit will get very high," Popescu elaborated.
In reference to the observance by the population of the rules enforced by the authorities in order to halt the infection with the novel coronavirus, the Economy minister believes that the people "are not aware where we are and where we stand".
"We are in the middle of an obvious crisis and it is a sanitary crisis. It is an epidemic and it will induce an economic crisis too, and for us to get over it sooner, we must protect and we must observe absolutely everything the authorities are urging us to do. Or, a restriction of movement by day, a restriction of movement by night are put in place exactly to protect us and they must be observed by absolutely everybody," Popescu added.
Furthermore, when asked if the people behave like this because they lack discipline, he answered that they don't realise the huge peril yet.