Romania’s current economic growth is not just robust, but sustainable too, and could be in the long run, provided that we avoid making mistakes, central bank (BNR) governor Mugur Isarescu told a conference dedicated to the banking sector.
‘Now that we seem to have put certain things behind, we can see their results, which are positive. The production loss during the crisis was fully recovered, the current economic growth is not just robust, but, judging by the current standards in force – at least in Europe – it is sustainable too. If we don’t fail again, we will experience growth in the long term,’ Isarescu said.
According to governor of the National Bank of Romania (BNR), there has been a massive correction of the current account deficit from 14 percent to less than 1 percent at present, and inflation hit record lows, hovering below 1 percent in yearly terms.
‘The sustained fiscal consolidation effort depends on how we measure it, but it’s among the highest in the European Union. Not only that it paved the way to removing the excessive deficit, but it also helped us achieve the medium-term structural deficit target of 1 percent at the end of 2014. In this context, whereas at the beginning of the crisis Romania was falling short of all four Maastricht criteria, now they are fully met and we can half-jokingly say that we came to be the first among the five East European non-euro area member states,’ said Isarescu.
The BNR governor cautioned that Romania is now faced with a major challenge, specifically what to do from now on to ensure the sustainability of this accomplishment.