All the forecasts for Romania, including the most optimistic one, of 4.1%, belonging to the Government, indicate a slowdown of the economic growth rate for this year compared to the previous years, being in line with the trend of the global economy, according to a statement of PwC Romania.
“Therefore, a stable and predictable legislative framework , as well as public investments, especially in physical infrastructure, could contribute to the economic activity. Unfortunately, the low level of budgetary collection as a share of GDP and the rapid pace of increase of current state spending put pressure and limit the role of fiscal-budgetary policy in stimulating economic growth. In 2020, and even more so in the years to come, a consolidation of public finances should take place by improving tax collection and recalibrating public spending to create a favorable investment climate,” says Ionuţ Simion, Country Managing Partner PwC Romania, according to Agerpres.
According to the Global Economy Watch – 2020 Predictions, the global economy will have a modest growth rate in 2020 of about 3.4%, compared to the long-term average of the 21st century, of 3.8% per year.
PwC forecasts that the global economy will move from inertia in 2020 as long as trade tensions continue to pose challenges. However, services are expected to remain one of the strengths for global trade, with the total value of global service exports expected to reach a record 7 trillion USD by 2020.