Romania could fall into recession following the electoral cycle

Romanian economy could fall into recession at the beginning of 2021, following the electoral cycle, due to unsustainable deficits, according to Ionut Dumitru, chief economist at Raiffeisen Bank Romania, quoted by Business-Review.eu.

“We expect that by the end of 2020, the beginning of 2021, rather, the economy will perform worse and enter into recession. Of course, entering the recession also depends on the international context and how it will be reflected in the Romanian economy,” Dumitru said, cited by economica.net.

“In 2021, if the rate of pension growth set in the governance program is maintained, we will end up spending the whole income from taxes only on pensions and salaries, a situation impossible to manage for the budget and impossible to be accepted by the financial markets,” Dumitru warns.

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