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Radulescu (BT): Romania could be among first 10 EU economies from nominal GDP point of view
Romania may have the chance to be one of the first ten economies in EU by the end of the decade in point of nominal gross GDP, said Andrei Radulescu, Macroeconomic Analysis director at Transylvania Bank on Thursday.
“The Bank for International Settlements published data which show the fact that foreign bank exposition for Romania went up to 7% / year over January-September 2020, an aspect confirming the foreigners' confidence in the development potential for Romania's economy and this potential will materialize in the post pandemic economic cycle or during this decade is faced with several opportunities, not just challenges. I refer mainly to the chance to join the Organization for Economic Cooperation and Development, Romania's chance to join the developed countries' club an aspect with significant impact on welfare. And maybe Romania has the chance to join the first ten EU economies from the nominal GDP prospect,” Radulescu said at the webminar “Romania where to? Lessons for 2021”.
He pointed out that 2021 meant a good start for Romania's economy, an aspect backed by factors such as the significant improvement of the investment risk prospect in Romania.
“You saw that the risk premium for 5 years has considerably dropped in the last few weeks. The cancellation of the investment risk perception was also seen at the level of financing costs. If we consider the interest rate for state bonds due in ten years, we see that the lowest level since 2015 has been recently recorded. In other words, we are witnessing a very low level this year, for real financing costs, an aspect which corroborated with EU programs , such as Next Generation, will support a significant improvement of the investment climate, “ the BT official explained.
He pointed out that, according to Eurostat data, in the first three quarters of 2020, Romania had increase, a positive annual dynamic of productive investments, and was the single country that reported such an advance, “an aspect which supports a rapid transition from the post crisis economic cycle which was interrupted by the sanitary crisis,” to an economic cycle which, in his opinion has already started in Romania by mid 2020, as it happened in world and European economies.