By comparison, Romania’s Government expects an economic downturn of 1.9% in 2020, one of the most optimistic forecasts. The European Commission expects Romania’s economy to contract by 6% in 2020 under the impact of the coronavirus crisis, and the International Monetary Fund estimates Romania’s economy will drop 5% in 2020.
The EBRD report also says investments in Romania decreased against the backdrop of uncertainty and market sentiment, while the pressure on liquidity and the breakage of supply chains may halt ongoing investment projects.
Per EBRD report, Romania’s GDP rebound of 4% in 2021 will be due to the private sector, but it is conditioned by the relaxation measures that will be implemented after easing restrictions meant to prevent the spread of coronavirus infections.
According to EBRD representatives, the economic recovery in 2021 is expected to be driven by the private sector as the latter is reviving. Nevertheless, the economic growth will depend on a gradual relaxation of domestic restrictions and on things going back to normal in the second half of 2020.