RSS
PwC: All prognoses for Romania show slowdown of economic increase rate
All prognoses for Romania, including the most optimistic one of 4.1% made by the government, indicate a slowing down of economic growth for this year against previous years, being in line with tendencies of global economy, according to a PwC Romania press release.
“All prognoses for Romania, including the most optimistic one of 4.1% made by the government, indicate a slowing down of the economic growth rate for this year, against previous years, in line with tendencies of global economy. Therefore, a stable and predictable legislative frame and public investments, especially in physical infrastructure could contribute to economic activity. Unfortunately, the low level of budget incomes as GDP share and the high rate of increased current expenses of the state lay pressures and limit the role of fiscal-budget policy in stimulating economic growth. In 2020 and even more in the next years, there should be a consolidation of public finances by improving tax collecting and re-calibration of public expenses to set up a favorable investment climate,”said Ionut Simion, Country managing partner PwC Romania.
PwC provisions show that global economy might advance from inertia in 2020, as long as commercial tensions continue to create challenges. However, it is expected that services will remain one of the strong points for global trade, the total value of global exports of services being considered to reach 7 trillion dollars in 2020.
According to the basic scenario, the PwC prognosis is that all large economies will grow in 2020. The US economic activity will extend b 2%, in line with its potential growth rate. The euro zone will have a growth rate of about 1%. Germany and other economies sensitive to global commercial flows will become more dependent on domestic consumption as growth source, instead of net exports and investments. Of emerging economies, that of China may advance by less than 6%. According to IMF estimates, 2019 was the year in which India exceeded Great Britain and France, becoming the 5th largest world economy. If this tendency continues, India will surpass Germany by 2025 and Japan before 2030, becoming the third largest world economy after USA and China.
According to the study, in 2020 the world population will be 7.7 billions, which represents a 10% increase compared to 2010. China, India and Subsaharian Africa will contribute with about half of the annual global increase. At the same time, the number of people aged over 60 will exceed a billion this year.
The study also shows that the high automation level in most industries will increase the operational robot stock to 2.6 millions in 2020, more than half a billion people will live in the 30 largest cities of the world, while the largest city in point of population will be Tokyo, followed by Delhi and Shanghai.