The impact of tough economic sanctions set by the EU against Russia is estimated at 0.6% on Romania’s GDP this year and at 0.3% in 2015, under the most radical scenario drafted by the EC, HotNews informed, quoting a leaked document sent by the Commission to the government in Bucharest. This would depress the country’s economic growth to 1.7% this year and 2.2% in 2015.
The Commission has reportedly drafted three scenarios, based on mild, moderate and tough economic sanctions to be set against Russia, and confidentially informed national governments before any such decisions are taken. The scenarios evaluate the impact on the economic growth, exports and imports.
Based on the position of each country, the Commission will draft a document to be used for deciding on further joint EU-level, or national, sanctions against Russia in case the latter intensifies its pressures against Ukraine, HotNews comments quoting unnamed government sources.
Under the moderate sanctions scenario, the negative impact on Romania’s GDP would be of 0.3% this year and 0.1% in 2015. The weak sanctions scenario would only diminish this year’s GDP by 0.1%, while keeping the 2015 GDP unaffected.
Under its baseline scenario, the EC expects Romania’s GDP to increase by 2.3% this year and by 2.5% in 2015 after last year’s 3.5% GDP advance driven partly by the agriculture.
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
EC clears €200mn capital increase at Romanian state-owned CEC Bank
The European Commission has approved Romania’s planned €200mn capital increase for state-owned CEC Bank, allowing the country to proceed with strengthening the lender’s financial position, ... more
Austrian bank Addiko to enter Romanian market with consumer loans first
Addiko Bank, an Austrian financial institution specialising in the consumer and SME sector operating in Central and South-Eastern Europe (CSE), is preparing to launch operations in Romania with the ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
19 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago