The European Commission states that the increase in oil prices as well as the liberalization of the electricity market in January would lead to an increase in the average annual inflation rate in Romania to 2.6% in 2021, from 2.3% in 2020, after which it should be dropping slightly, to 2.4%, in 2022.

At the same time, after a contraction of 5% in 2020, the Romanian economy will recover this year thanks to private consumption and investments, so that the real Gross Domestic Product will register an increase of 3.8% in 2021 and an advance of 4% in 2022 , according to the winter economic forecasts published on Thursday by the European Commission (EC).

In comparison, in the previous forecasts published in November, the EC estimated that the Romanian economy will register an advance of 3.3% in 2021, respectively 3.8% in 2022, after a fall of 5.2% in 2020.

“Private consumption is expected to recover strongly from the second half of 2021, as vaccination progress should allow for a gradual lifting of restrictions. Consumption is expected to remain robust in 2022. Investments will remain strong throughout the forecast horizon, supported by the construction sector. Exports are expected to recover,” says the Community Executive, according to Agerpres.

Across the European Union, the European Commission estimates that the EU economy will grow by 3.7% in 2021 and 3.9% in 2022, while the eurozone economy will grow by 3.8% in both 2021 and 2022. In addition, euro area and EU economies are expected to reach pre-crisis output levels earlier than expected in the autumn 2020 economic outlook, largely due to the larger-than-expected growth rate in the second half of the year 2021 and in 2022.