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Nouriel Roubini: I don’t see the risk of a crisis, but the macroeconomic situation is imbalanced
Romania is a country which could be an example of success in Europe, stated on Monday the renowned economist Nouriel Roubini in a conference organized by Profit.ro in Bucharest, adding that he doesn ‘t see a risk for a crisis, but the macroeconomic situation is imbalanced.
‘I don’t see a risk for a crisis, but the macroeconomic situation is imbalanced’ stated on Monday Nouriel Roubini at the Conference ‘ The state of world economy 11 years since the economic crisis. Are we ready for a new recession?’ organized in Bucharest by Profit.ro. He says that it needs to get the budget towards investments, as well as a reform of the public administration and the fiscal system. Roubine states that Romania must take measures for the fiscal balance, after the Romanian state oriented the expenses towards consumption and less towards investments, which led to an increase of the foreign deficit, over the budgetary deficit. He considers that the reforms could lead to an increase of over 3-4% per year. Roubini draws the attention that the deficit coulddouble from 3% of GDP.
‘If you want to increase the minimum salaries, you have to keep them with productivity. Otherwise, the increase in salaries lead to increase in imports. A commercial deficit and public one mean an increase of the public debt on long term’, Roubini says. Even so, the economist says that he sees no risk of crisis in Romania.
‘Romania is a country which could be an example of success in Europe’ the economist said. Roubini is a renowned professor of Economy at the New York University who anticipated the world economic crisis of 2008. In September 2006 Nouriel Roubini announced in front of the audience of economists at the International Monetary Fund that a crisis will take place in the months and years to come.