Romania’s economy shrank by 12.3 percent in the second quarter of this year compared to the first quarter, according to data released on Friday by the National Institute of Statistics.

Compared to Q2 2019, the Gross Domestic Product fell 10.5 percent both in gross and seasonally adjusted terms.

Romania’s economy was 3.9 percent down mid-year from the same period last year as seasonally adjusted series, and 4.7 percent less as gross series.

Finance Minister Florin Citu announced on Thursday evening that the National Strategy and Forecast Commission too revised its estimates for the economy’s evolution this year from an initial contraction of 1.8 percent to 3.8 percent.

According to the economic forecasts released this summer by the European Commission, Romania’s GDP will fall by a significant 6 percent in 2020, a figure similar to that put forth in the Community Executive’s May projection.

For 2021, the EC expects Romania’s GDP to advance 4 percent, instead of the 4.2 percent forecast in May.

The European Commission warns that the risks to the growth outlook could be revised upwards, as a a second wave of coronavirus infections in Romania or in any of its main trading partners could delay the economic recovery. In addition, an important element is how the authorities balance the need for support measures with concerns about the medium-term trajectory of public finances which pre-dated the COVID-19 crisis and which, if left unresolved, could ultimately affect investor confidence, lead to higher financing costs and a slower growth, shows the European Commission’s report.

Via Agerpres