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October 23, 2020
ECONOMY FINANCE&BANKING

World Bank improves prospects for Romania’s economic evolution for 2018 and 2019

The Romanian economy will record an advance of 4.5% in 2018 and 4.1% in 2019, compared with an advance of 3.7% and 3.5% respectively estimated in June last year, shows the report “Global Economic Prospects” published on Tuesday by the World Bank.

Moreover, the international financial institution expects Romania to report a GDP growth of 6.4% for 2017, compared to the 4.4% estimated in June.

The growth will slow down in 2020, when the Romanian economy is expected to record an advance of 3.5%, shows the report of the World Bank.

The international financial institution believes that the new privatisations facing Central Europe (including here Romania, Poland, Hungary and Bulgaria) represent an opportunity for increasing productivity, especially if they are coupled with an improved management and corporate governance, increased access to international markets and a good functioning of the legal and institutional framework. Besides privatisation, there are also other important opportunities for strengthening governance and, thus, productivity of the state companies, as shown by the efforts made by Romania and Macedonia, reads the report published by the World Bank.

In Romania, several state companies were depoliticized and their Boards of Directors professionalized over 2013-2016. Moreover, Romania also adopted, in 2016, the Law on governance of state-owned companies, which improves the criteria for selection and assessment of managers of state companies and introduces performance monitoring for other managers.

However, the implementation of this law has been delayed and resistance to change is still significant, warns the World Bank.

The gradual slowing down of the expansion of the EU economy will also impact the advance of exports to the region, especially Central Europe, where the GDP is expected to slow down, from 4.7% as estimated for 2017 down to 3.2 per cent in 2020, on the background of growth pace slowing down in Hungary, Poland and Romania.

 

Premier Tudose wants 2018 to be a good year, since it surely won’t be tranquil

 

Premier Mihai Tudose wants the year 2018 to be a good one, specifying that it surely won’t be tranquil.

“It’s the first government sitting on 2018. May God make it be a good year, because tranquil will certainly not be,” Tudose said at the beginning of the Gov’t reunion.

Mihai Tudose added that the World Bank has revised its estimate regarding Romania on 2017 and this year’s prognosis, saying that we close the year 2017 with over 6, even 6.4pct growth.

Romania’s economy will record a 4.5pct advance in 2018 and 4.1pct in 2019, against a growth of 3.7pct and 3.5pct forecast in June 2017, says the “Global Economic Prospects” issued on Tuesday by the World Bank. The WB is expecting Romania to report for 2017 a GDP’s increase by 6.4pct, versus 4.4pct, forecast in June 2017.

 

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