Romania: The IMF projects a 5% downturn in 2020

Romania: The IMF projects a 5% downturn in 2020

As the novel coronavirus continues to spread across the globe, the International Monetary Fund (IMF), in its latest report on the outlook of the world economy published yesterday, estimates that the Romanian economy will contract by 5% in 2020, while suffering an explosive increase in unemployment rates from 3.9% in 2019 to 10.1% in 2020. However, the Fund projects that unemployment rates will decelerate to 6% in 2021.

The IMF’s forecasts for Romania are more pessimistic than those of the World Bank, which last week announced its estimates for a 0.3% economic growth in 2020.

For his part, Finance Minister Florin Ceyu said he was convinced that, despite the recession in the Romanian economy, there would be a recovery in the second half of this year. /ibna