Romania has recorded economic growth, but by stimulating the demand and consumption, we have rather created jobs in other countries, given that demand was met mainly by imports which have grown faster than exports, the governor of the National Bank of Romania Mugur Isarescu has said.
“In Romania, we register growth, we have no deflation, despite the fact that the annual index is placed into negative territory and, from a monetary policy perspective, we have kept our room for manoeuvre: we have all the instruments – interest rate, the corridor, regulating liquidity, the obligatory minimum reserves. However, we see that the stimulation of demand and consumption have rather created jobs in other countries. Currently imports grow faster than exports, the demand goes to imports, although it would have been better if the demand was stimulated by increasing the domestic production. We are not against incentives, but it is imperative that they are carefully chosen to have an appropriate dosage and to be applied at the appropriate time,” reads the BNR Governor’s message sent during the annual conference of the Association of Financial-Banking Analysts in Romania.
In this context, Mugur Isarescu reiterated the need to preserve macroeconomic stability and internal balance.
“We must take care of it as the light of our eyes because sustainability comes from it, sustainability of our development and the achieving of welfare in a world that faces many uncertainties and changes,” said the BNR official.
He also noted that these concepts and messages, that seem natural for professionals, should be explained at all levels in Romania, including by the financial analysts attending the conference.
Mugur Isarescu argues that it is essential that the public in Romania, including the decision makers, but also those interested in Romania’s development, understand the role of approaches and of balanced policies in the current global context, which is strongly marked by uncertainties, but also by populist accents.
“Imbalances occur relatively easy, especially in a volatile environment and correcting them is painful. Without a fair measure will be difficult to convince and the feelings, the investors’ perceptions, but also of the people affected by the measures made by decision makers, can change rapidly and can in turn produce changes not always beneficial,” Isarescu said.
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