The European
\nCommission has revised its forecasts on Romania’s economic growth rate this
\nyear up to 4% pointing out to a rise in its GDP of up to 3.3%. However, there
\nis a significant difference between the European Commission forecasts and those
\nmade by the authorities in Bucharest who drew up the country’s budget based on
\na 5.5% growth. <\/p>\n
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According to the
\nEU Executive’s summer estimates, the growth rate is going to slow down next
\nyear to 3.7%. Public consumption remains the economy’s main engine, spurred by
\nthe latest pay rises. Investment is also on the rise chiefly thanks to the
\nrecovery experienced by the construction sector, stimulated by fiscal measures.
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The Commission believes
\ninflation will stay around 4.2% this year and at 3.7% next year. Romania has a
\nrobust economic growth though it remains chiefly based on consumption, the
\ncountry’s central bank governor Mugur Isarescu says. During the presentation of
\nthe bank’s annual report, Isarescu has explained how the economic growth is
\nbacked less by investment whereas the export’s negative contribution has been
\nsignificantly higher than in 2007. <\/p>\n
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Mugur Isarescu: We have an economic growth or domestic absorption to be more correct,
\nbeyond what the economy can provide. Consumption has been boosted more than
\nwhat the economy can provide and part of this growing demand, coming from pay
\nrises, from stimulated consumption, could not be covered from the domestic
\noutput and was covered from imports instead. The consolidated budget was being kept
\nunder 3% but it’s been the last time since 2015 when we are able to meet our
\nstructural deficit budget around the limit of 3%. Budget, salary and investment
\nexpenses are going in opposite directions. <\/p>\n
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Mugur Isarescu
\nhas declared himself satisfied with the low fluctuation of the national
\ncurrency and also with the public debt, which remained at the same debt-to-GDP
\nratio, around 35%, being among Europe’s lowest. <\/p>\n<\/p>\n
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Mugur Isarescu: In spite of negativistic forecasts, the debt rate didn’t rise as against
\nthe GDP. Of course, the GDP’s rapid growth has largely contributed to that.
\nPublic debt stands around 35% of GDP, one of the lowest in Europe and we’d
\nbetter keep it at this ratio. <\/p>\n
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This performance
\nhas also been noticed by the rating agencies, and that could allow us to get bigger
\nloans from the international market at relatively low costs, Mugur Isarescu has
\nexplained. The problem is how we use money and why we see this deficit increase.
\nReferring to the inflation rate, the central bank governor said that after an
\nincrease in the first half of last year, towards the end of the year, it
\nreached the level of 2017. <\/p>\n
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With a mandate
\nof almost 30 years at the helm of the country’s central bank governor, Mugur
\nIsarescu says that Romania boasts a credible central bank stable at international
\nlevel, which has obtained good financial results. <\/p>\n
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(translated by
\nbill)<\/p>\n
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Romania has a robust economic growth, which continues to be chiefly based on consumption, says the Central Bank governor Mugur Isarescu<\/p>\n","protected":false},"author":110,"featured_media":82487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35241,39711,31693,30059,34756],"coauthors":[],"class_list":["post-82486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-bank","tag-central","tag-gdp","tag-isarescu","tag-mugur"],"acf":[],"yoast_head":"\n