Romania’s GDP to lose up to 0.6% this year if EU sets tough sanctions against Russia

By bne IntelliNews April 24, 2014

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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Moldova’s largest lender maib puts Bucharest exchange listing on hold

The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more

Romania’s leading financial group Banca Transilvania reportedly takes over BRD Pensii

Banca Transilvania, the leading financial group in Romania by assets, has reportedly reached the stage of agreeing technical and legal details for the takeover of BRD Pensii division from BRD-SocGen, ... more

Romania’s leading lender Banca Transilvania takes over OTP Bank’s subsidiary

Romania’s largest financial group by assets, Banca Transilvania (BVB: TLV), announced that it had signed a contract ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Don't mention the "D" word - Ukraine
    6 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    1 day ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss