World Bank Upgrades Outlook for Romania’s GDP Growth

Romania’s economy will grow by 6% this year, fully reversing the 3.9% contraction caused by the COVID-19 pandemic last year, according to an updated Global Economic Prospects published by the World Bank. The global outlook remains subject to significant downside risks, including the possibility of additional COVID-19 waves and financial stress amid high EMDE debt levels, the WB cautions. The growth rate in Romania would further ease to 4.5% in 2022 and 3.9% in 2023, according to the Bank’s scenario. It has considerably upped its assessment of the Romanian economy in 2021 from the 3.5% growth rate anticipated in January. The International Monetary Fund (IMF) also recently bumped up its projections, estimating a 7% expansion on May 30, after the Article IV consultations – an upgrade from its 6% forecast in April.