The World Bank updated the global economic outlook on Tuesday, stating that Romania‘s economy will grow by 6% in 2021, fully reversing the 3.9% contraction caused by the COVID-19 pandemic last year, according to Romania-Insider.
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 World Bank cautions.
The growth rate in Romania would further ease to 4.5% in 2022 and 3.9% in 2023, under the Bank’s scenario.
The Bank has considerably improved its forecast on the advance of the Romanian economy in 2021 from a growth of 3.5% anticipated in January. The International Monetary Fund (IMF) also recently improved its projections, estimating an advance of 7% on May 30, after the Article IV consultations – an upgrade from its 6% forecast in April.
The World Bank stated that the global economy is expected to advance by 5.6% this year, the fastest recovery from a recession in 80 years, supported mainly by solid recoveries from several major economies, such as the US and China.
The estimate for the growth of the global economy has been revised upwards by 1.5pp.