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World Bank foresees 6% economic growth for Romania this year

The World Bank improved its estimates about the evolution of Romania's economy for the ongoing and next years, when world economy is expected to register in 2021 the strongest increase in the last 80 years.

 

According to the latest editions of the report on global economic prospects, the World Bank estimates that Romania will register a 6% GDP increase , 2.5% over the January estimate, and will register a 4.5% increase next year, 0.4% over previous estimates. For 2023, the World Bank foresees an economic growth of 3.9% for Romania.

 

Romania's economic advance this year would be superior to the one registered by Europe and Central Asia (3.9%), but the World Bank warns that at regional level, risks are still high, considering the slow rate of the vaccination campaign, political uncertainty and geopolitical tension.

 

At global level, the World Bank has improved the growth prognosis for this year by 1.5%, to 5.6%, which means that world economy will register the most powerful increase in the last 80 years. However, the international financial institution warns that many countries, especially poor ones, are left behind and will need several years to recover to the level they had before the pandemic.

 

Although there are encouraging signs of global recovery, the pandemic continues to produce inequalities to developing countries throughout the world, said David Malpass, the World Bank president. According to him, coordinated efforts are needed at world level to accelerate the distribution of vaccines and wipe up debts for countries with small incomes.

 

The World Bank report shows that the return will be uneven, when big world economies, especially the USA, take advantage of the vaccination campaign progress and of stimulation programs. Among advanced economies, about 90% of them will return, by 2022, to the per capita income they had before the pandemic, while only a third of emerging and developing countries will succeed the same performance. Consequently, the difference between advanced economies and the poorer ones about the per capita income will grow even more.

 

IMF estimates for 2021 Romania's strong economic recovery, with a real GDP advance of 7%, while the European Commission shows an increase of Romania's economy by 5.1% in 2021 and 4.9% in 2022.

 

The National Strategy and Prognosis Commission reviewed the estimate of GDP advance to 5% in 2021.

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