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April 23, 2021

WB: Romanian economy still in the red despite favourable developments in Europe

Emergent Europe and Central Asia have returned to economic growth but there are fears about unemployment and the economic growth’s durability, the World Bank announced during a press conference occasioned by the IMF’s and the World Bank’s annual meeting in Washington, ‘The Financial’ informs, being quoted by Realitatea.net. “Recovery was not felt the same in all states. Croatia, Latvia, Kyrgyzstan and Romania have not returned to growth yet,” Philippe Le Houerou, World Bank’s Vice President for Europe and Central Asia Region, stated.

He pointed out that thanks to more powerful economies in Poland, Russia and Turkey the economy moved from a 5.1 per cent drop in 2009 to a projected growth of 3.9 per cent in 2010. Nevertheless, the WB official warned that “the recovery is not similar; the 30 states of emergent Europe and Central Asia form a differentiated picture.” At the same time, Philippe Le Houerou explained that unemployment remains high in most Central and Eastern European states and continues to rise in the Commonwealth of Independent States (CIS). This trend is slowing down economic growth and the recovery’s burden is felt by many families that are no longer able to make ends meet.

Emergent Europe and Central Asia were hit by the crisis worse than other world regions because of their closer integration into world trade and financial markets and because of the weaknesses of policies adopted in some of the countries. As a result of these international ties, the decline of economic activity at world level caused the severest decline in this region’s economic activity, fiscal balance and capital inflow, the World Bank considers.

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