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World Bank reviews estimates on relaunch of Romanian economy in 2021
The Romanian economy will record a 3.5% advance this year, after a contraction of 5% in 2020, so that in 2022 economic growth will accelerate to 4.1%, according to the latest report on world economic prospects released by the World Bank on Tuesday.
In comparison, the World Bank prognosticated in October 2020 that Romanian economy would contract by 5.7% in 2020, but will register a 4.9% relaunch in 2021.
As for Europe and Central Africa region, in which Romania is included, the World Bank expects the economy in the area to register a moderate advance pf 3.3% this year and points out that this scenario is conditioned by the distribution of an efficient vaccine at the beginning of 2021 in advanced economies, in big emerging market and in developing economies, Russia included, and in other countries in the second part of the year. The scenario starts from the hypothesis that geopolitical tensions will not escalate in the area.
The World Bank reviewed downwards its prognoses on world economic growth recorded in 2021 to 4% from 4.2% as estimated previously, after a contraction of 4.3% in 2020 and warned that an increase of Covid 19 infection cases and delays in distributing vaccines might limit the return limit to 1.6% this year.
In order to overcome the pandemic effect efforts must be made to improve business, to increase flexibility in the labor market and consolidate transparency and governing, said David Malpass, the World Bank president.
The World Bank warns that short term prospects are very uncertain and various scenarios are possible. A pessimistic scenario in which infections continue to grow and launching the vaccine is delayed, may limit global expansion to 1.6% in 2021. In exchange, an optimistic scenario in which pandemic is successfully controlled and vaccination is rapidly carried out, the increase of world economy could accelerate to 5%, according to the latest report of the international financial institution.
The World Bank Group, one of the biggest financing and expertise source for developing countries takes rapid and complex measures to help developing countries and consolidates its reaction to challenges generated by the pandemic.