The Bank also cut its estimate on the 2013 growth to 2.8%, from 3% initially, according to a report on global economic prospects released Tuesday. The Bank expects Romania’s economy to grow by 3.4% in 2014.
The latest forecasts by the International Monetary Fund and the European Commission regarding Romania’s economic growth this year are slightly more positive than the World Bank’s projections. The IMF expects the GDP to grow by 1.5%, while the European Commission sees 1.4% growth.
“Developing countries should prepare for a long period of volatility in the global economy by re-emphasizing medium-term development strategies, while preparing for tougher times. A resurgence of tensions in high-income Europe has eroded the gains made during the first four months of this year, which saw a rebound in economic activity in both developing and advanced countries and an easing of risk aversion among investors,” says the World Bank’s report “Global Economic Prospects.”
In the Europe and Central Asia region, which includes Romania, economic growth will slow down from 5.6% last year to 3.3%. Economies with links to high-income Europe will continue to be affected by the weak demand in the west and reduced exposure by banks, says the report.