Romania needs its GDP per capita to grow by at least 10 percentage points by 2019, the year in which Romania’s accession to the Euro Zone is scheduled, in order for the country to be competitive within the Monetary Union, National Bank of Romania (BNR) Vice Governor Bogdan Olteanu claims.
“Romania took the commitment to accede to the Euro Zone in 2019. This entails a solid and serious convergence process. Our estimates are that we have to boost the GDP per capita expressed in purchasing power parity by at least 10 percentage points in order to be sufficiently competitive within the Monetary Union,” Bogdan Olteanu stated on Thursday at the Emerging Funding for the Real Economy conference.
In his opinion, Romania is in the best position ever from a macroeconomic standpoint, but this position was obtained with significant efforts and costs. “We have solid figures behind the recovery effort,” Olteanu stated, referring to the external deficit adjustment in recent years, the evolution of the GDP and the payment of debts.
“Romania has almost finished reimbursing the loan contracted in 2009 from international financial institutions, while maintaining its forex reserves at a high level of over EUR 30 bln,” the BNR Vice Governor emphasized.
Referring to the geopolitical situation in the region, the BNR official claims that Romania has not been directly affected by the conflict in Ukraine. Moreover, Bogdan Olteanu believes the country faced more problems because of the crisis in Turkey than because of the crisis in Ukraine, despite the latter’s geographic proximity. Likewise, the fact that many agro-food exports destined for Russia were redirected toward Romania because of the embargo has helped lower inflation in our country.