Coronavirus Pandemic Crisis

The global pandemic spread was asynchronous and had a tremendous impact on the economy that simultaneously hit the demand and supply sides. Compared to previous crises, predicting the developments and shock intensity is complex due to factors relating to indeterminacy and the pandemic dynamics. However, the crisis transmission mechanisms are precise and play an essential role by amplifying its effects. The intensity of the crisis will depend on the starting conditions and the policy measures supporting the economic activity. Romania was confronted with it in a phase in which the economy was already experiencing slowdown signs; listed non-financial companies already showed a more marked deceleration growth rate of turnover and profitability than other European competitors, distinguishing for their more outstanding indebtedness; domestic stock market indices in most cases remained chronically lower than those before the 2008 global crisis. On other fronts, the departure conditions did not raise particular concerns.