The postponement of structural reforms in the last 20 years has maintained a lot of centres for deriving rent from the economy, centres that replaced a goal that would have led to a hike in savings, namely the goal of maximizing income per capita, Lucian Croitoru, advisor to the Governor of the National Bank of Romania, stated, wall-street.ro informs. Economic growth is still dependent on foreign capital because of poor internal savings, something that also led to a reduced offer of RON-denominated credits on the long term.
Croitoru said that privatizations were late in taking place and people were left in factories, losing the chance of moving to a viable sector at a time when “they were young, they had the necessary energy and could adapt to new conditions.”
Croitoru added that given the internal and external economic conditions, a deficit of 3 per cent of GDP looked optimal at the start of this year, however the sovereign debt crisis has changed the parameters.
