On Wednesday, August 5, the National Bank of Romania decided to further lower the monetary policy rate, from 1.7% to 1.5% starting from Friday, August 6. Thus, the internal consumption is encouraged and money is put into circulation.
The National Bank of Romania hopes for such measures to help the economy. Both entrepreneurs, who would have access to low interest loans, and the population, who would be encouraged to spend, could bring their contribution to the recovery of the Romanian economy.
Unfortunately, the Romanian Government relies too much on entrepreneurs and on population when it comes to the recovery. Romania allotted only 3% of the GDP in a package meant to restart the economy, while the neighboring Hungary allots 18% and Czech Republic 14%.
Moreover, Romania is expected to reach a new record of the unemployment rate in 2021: 8.5%, according to the specialists from Erste Group. This would be a higher figure even than the previous record from 1993, when it was 8.27%.