Popescu: If this crisis will last 1-2 months, budget deficit may grow at 5%


Romania’s budget deficit will reach around 5%, if this crisis caused by the coronavirus pandemic will last for one or two months, but if it lasts longer it is very difficult to predict how the deficits will evolve, said on Monday evening, the Minister of Economy, Virgil Popescu.

“At the Ministry of Economy I have no data on what will happen in three months (…). What I can tell you is that from my estimates, from discussions with the Minister of Finance, if this crisis will last one to two months we we can have a budget deficit of around 5%. If it will take longer, it is already difficult to predict where it should go. 5% is not a firm figure, but it is a possible figure. But over two months, three months, four months, the budget deficit will be very-very large,” said Popescu, at Digi 24, according to Agerpres.

Regarding the complying of the population to the rules imposed by the authorities to stop the infections with COVID-19, the head of the Economy considers that the people “does not realize in what position were in.”

“It is an epidemic and this will induce an economic crisis, and in order to finish it faster we must protect ourselves and we must respect absolutely everything the authorities say. Or, restriction of circulation by day, restriction of circulation by night are just there to protect us and must be respected by everyone,” he said.


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