The main systemic risk is related to the tensioning of macroeconomic balances in Romania, with the solution being the gradual decrease of the budget deficit in order to meet the Medium Term Objective (MTO) and the speeding of structural reforms, National Bank Governor Mugur Isarescu said on Wednesday, during the conference on presenting the Report on financial stability.
“Romania had an average economic growth of 4.6% during the past five years. This impressive pace, which contributed to reducing the gap against the EU average, unfortunately has been associated with an important growth of consumption, to the detriment of investments,” Isarescu said.
The BNR Governor stressed that the increased consumption leads to higher imports, much above the exports.
Isarescu argued that the main challenge for the next period is the external deficit, i.e. the current account deficit, given that at regional level Romania is an exception in terms of current account developments in the past years.
“It is very good we register economic growth, but let’s look and see how we get it and keep it, because if we continue this trend, sooner or later, a correction will be needed and any correction is made at a cost and is unpleasant, it’s painful,” Mugur Isarescu said.