RSS
Parliamentary elections in Romania increase the supplementary expenses, warns the World Bank
The World Bank warns that the elections to take place in December, in Romania increase the risk of supplementary expenses and slowing down of the implementation of the structural reforms. On average term there is need to balance the fiscal policies.
‘ The Economic report for the region Europe and Central Asia (ECA): polarity and populism’ launched on Wednesday by the World Bank shows that Romania must implement the structural reforms which will support the improvement the capacity of production, including the measures to combat corruption, consolidation of the public administration and state-run companies. At the same time, there are necessary efforts to generate the creation of new work places, taking into consideration that the unemployment rate is high both among young people and those with low qualification.
‘Romania has rather stable economy and records economic growth. Priority is to implement structural reforms, with focus on competitiveness policies’ stated on Wednesday Hans Timmer, the head economist of the World Bank for Europe and Central Asia, when the report was presented in Bucharest.
On average term it is necessary to rebalance the fiscal policies, from the stimulation of consumption to the support of a sustainable growth.
The World Bank improved the estimates regarding the growth of Romanian economy in 2016 from 4% as it was estimated in June to 5.1%. Even so, Hans Timmer considers that the economic data especially the GDP of the countries included in the report, do not reflect the seriousness of the economic challenges. He spoke about the vote for Brexit and the growth of populism, uncertainty on the work market and the increase of the citizens’ mistrust as regards the institutions and the economic system. ‘ The vote for Brexit and the crisis of the refugees test cooperation at European level, while the eastern half of the region tries to adapt to the lower prices of oil’ Timmer said.
The growth will stay positive in Eastern Europe and Central Asia and the GDP will have a growth of 0.7 percentage points in 2016, 2.3 percentage points in 2017 and 2.6 percentage points in 2018. At the same time, there is a drop in the growth in the European Union and the Western Balkans estimate a growth of 2.7 percentage points in 2016, 3.2 percentage points in 2017 and 3.5 percentage points in 2018.