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IMF improves estimates about Romanian economy evolution in 2020 and 2021
The International Monetary Fund (IMF) has slightly improved estimates about the evolution of Romanian economy both this year and next year, according to the latest report “World Economic Outlook”, released on Tuesday by the international financial institution.
While in April, IMGF estimated that Romania would register in 2020 a 5% contraction, according to WEO provisions, the international financial institution expects Romanian economy to register a 4.8% contraction in 2020, to reach 4.6% in 2021, over figure of 3.9% advanced in spring.
The new IMF estimates are more optimistic than those of the World Bank, which said last week that Romania would register a 5.7% contraction in 2020. In exchange, for 2021 the World Bank estimates that Romanian economy would register a relaunch of 4.9%.
At the same time, IMF has improved estimates about the current account deficit recorded by Romania this year, up to 5.3% of GDP in conditions in which in spring it foresaw a deficit of 5.3% of GDP. Next year, the level of the current account deficit will drop to 4.5% of GDP, better than the drop to 4.7% of GDP it foresaw in April.
The new IMF estimates are more optimistic about the evolution of the unemployment rate, which will grow from 3.9% in 2019 to 7.9% in 2020, significantly less than the 10.1% advance estimated in April. In exchange, provisions for 2021, when the unemployment rate will drop to 6%, remained unchanged.