The European Bank for Reconstruction and Development (EBRD) has worsened its estimates on Romania’s economic evolution in 2020 and 2021, as a result of the crisis caused by the coronavirus pandemic (Covid-19), according to a report published on Thursday by the institution.

According to the latest EBRD forecasts, Romania’s economy is expected to decline by 5% this year, compared to a 4% decline forecast in May.

For 2021, the EBRD expects a 3% expansion of Romania’s GDP, compared to a 4% advance forecast in May, according to Agerpres.

It will also reach again the level of GDP per capita in 2019 in the second quarter of 2022, according to the EBRD, which forecasts that in the first half of this year the Romanian economy contracted by 3.9%.

After a robust increase of 4.1% in 2019, Romania is facing a recession in 2020. The key transmission channels are lower consumption and declining exports. The state of emergency introduced in mid-March and isolation measures to stop the spread of the coronavirus pandemic (Covid-19) lasted until mid-May, severely affecting travel, economic activity and consumer and business confidence, the report said.