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Airport in Bucharest, Romania. Photo credit: Adi Coco

Romania avoided lockdown – had the strongest growth in the whole EU

Romania's economy performed stronger than any other EU country in the last quarter of 2020, when the second wave hit the whole of Europe. The country, unlike many other countries, chose not to shut down public life.

Published: February 25, 2021, 11:25 am

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    Bucharest

    “GDP not only grew in relation to the previous quarter, but was also 10 times stronger than analysts had expected. GDP growth of 5,3 percent means that the country is performing stronger than all other EU countries according to the data reported so far,” reads a news item from 16 February on one of the world’s leading business sites, Bloomberg.

    “Everyone will need to revise their GDP forecasts for 2021 upwards,” said Ciprian Dascalu, an economist at Erste Group Bank in Bucharest, about Romania’s unexpectedly strong economy.

    Other Eastern European countries also outclassed the rest of the EU during the fourth quarter. Hungary, Bulgaria, Latvia and Lithuania all reported positive GDP growth compared to the third quarter.

    In the EU as an average, growth was negative, minus 0,4 percent. Sweden performs slightly better than the average with a marginal growth of 0,5 percent. The worst development during the fourth quarter was noted in Austria, which introduced a hard lockdown. There, GDP fell by more than 4 percent.

    If you compare the fourth quarter of 2020 with the same period last year 2019, however, GDP development is negative in all EU countries with the exception of Ireland and Luxembourg. However, several Eastern European countries, including Romania, are among the best performing countries here, with a smaller fall in GDP than the EU on average.

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