Romania will avoid the technical recession and will have a smaller contraction of the economy than the public estimates made by the rating agencies, the European Commission (EC), the International Monetary Fund (IMF) and banking institutions, due to the prompt and efficient response of economic policies, says Finance Minister Florin Cîţu.

“All economies have been hit hard by this crisis. All countries have responded by raising budget deficits. We have been among the most cautious with the public money, but also because we are coming after a period of spending and theft of public money in socialist government. All central banks have raised interest rates to zero, because they know very well that now zero or negative real interest rates stimulate economic growth in the medium and long term. All countries will have an economic contraction in 2020. Most will have a technical recession”, he said.

”Romania will avoid the technical recession and will have a smaller contraction of the economy than the public estimates made by rating agencies, EC, IMF, banking institutions, etc., due to the prompt and efficient response of economic policies. But we will still have a contraction of the economy in 2020, which means budget revenues much lower than estimated, even if similar to those of the previous year,” Florin Cîţu wrote on Facebook, according to it Agerpres.

He states that Romania will have an economic recovery from the third quarter, in V, a basic scenario with which the National Bank of Romania (BNR) is also working, and this means economic growth in 2021.