RRI Live!

Listen to Radio Romania International Live

IMF forecasts economic recession

In is the first time, since 1994, when it was set up, that the International Monetary Fund issues such a gloomy economic outlook – a 3% drop in global economy in 2020 due to the coronavirus pandemic.

IMF forecasts economic recession
IMF forecasts economic recession

, 15.04.2020, 13:50

The International Monetary Fund has revised downwards its economic forecast for Romania this year, in the context of the coronavirus pandemic, according to its latest report. If in October 2019 the financial institution predicted a 3.5% growth for Romania this year, its latest forecast mentions a 5% contraction, followed by an almost 4% recovery in 2021. The IMF forecast is much more pessimistic than that of the World Bank, which last week said it expected Romanian economy to go up by 0.3% this year and by up to 4.4% in 2021.



In Bucharest, the Finance Minister Florin Citu has said the countrys economy will see a V-shaped recovery, with the decrease this year being compensated by economic recovery in 2021. The IMF also forecasts a dramatic increase in the unemployment rate in Romania, from almost 4% in 2019 to over 10% this year, and to 6% in 2021.



As a result of the pandemic, the global economy is projected to contract sharply by –3% in 2020, much worse than during the 2008–2009 financial crisis, according to the IMF report. In a baseline scenario, which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound, the global economy is projected to grow by 5.8% in 2021 as economic activity normalizes, helped by policy support. Reuters has announced that more than half of the 189 IMF members have contacted the fund in relation to emergency financing, in an effort to contain the virus and decrease its economic impact.



The IMF has said it was ready to deploy its 1-trillion dollar lending capacity to help member states fight the pandemic but that additional resources might also be needed as the pandemic hits developing countries. In an article entitled Global economy to suffer worst blow since 1930s, Financial Times warns that most countries should expect their economies to be 5% smaller than planned even after a sharp recovery in 2021. The World Bank and the IMF called on world leaders to better coordinate their actions so as to draw up a unitary plan to tackle the crisis, Wall Street Journal reports. (translated by Elena Enache)



European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Gas consumption in the EU (Credits: magnascan-pixabay-com)
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Photo: roaep.ro
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission
Today in the News Monday, 18 November 2024

35 years since the fall of the Berlin Wall

The fall of the Berlin Wall, 35 years ago, represented for Romanians an encouragement in their fight for freedom, and the removal of the Iron Curtain...

35 years since the fall of the Berlin Wall
Today in the News Friday, 15 November 2024

European minimum wage in Romania

The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has...

European minimum wage in Romania

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company