Radulescu (BT): We have highest level of macroeconomic imbalance since 2012

Romania has the highest level of macroeconomic  imbalance since 2012 to the present day, because reforms are no longer made, says Andrei Radulescu, senior economist at Transilvania Bank.

“This economic increase was unfortunately made on a slow dynamics of investments and with the price of intensifying deficits, domestic deficit, public finances and foreign deficit, Romania’s position versus the rest of the world. Notice the deterioration of current account deficit and by cumulating the two deficits we have the highest level of macroeconomic imbalance since 2012. Why? Because reforms have not been made since 2012. When the last accord with IMF ended reforms also ended and short term measures were implemented and reforms were given up, although economic times were ideal for reforms,”said Andrei Radulescu at a press conference.

According to him, financing costs had historic low levels, while investments could be made at accessible interest rates.

Radulescu pointed out that, in point of economic growth rate, Romania has the best dynamics in the area in the post crisis cycle, occupying the first places in EU, but that is not seen in the development stage.

According to him, Romania will have an economic growth of 4.2% in 2018, 3.3% next year and 3.1% in 2020.

Financing costs will grow and the interest rate of state bonds will grow from 3.9% in 2017 to 5.1% in 2018.

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