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Radulescu (Transylvania Bank): Romania's economy was never looked better before from the structural perspective
Romania's economy has never looked better than now and has never been so resistant from the structural perspective considers Andrei Radulescu, macroeconomic management director, Transylvania Bank.
“If we consider what has happened in Romania, we will notice that even from the beginning of pandemic economy has presented a macroeconomic performance superior to that of developed western countries, despite the fact that Romania entered pandemic with a relatively low margin of economic policy intervention. However, Romania's economy proved resistant and evolved better compared to the euro zone, both in 2020 and 2021. Look at figures in the first 9 months of the present year. We have economic growth over 7% compared to the same period of 2020 and Romania has been among few countries that recorded a positive annual dynamic of productive investments in 2020, which allowed a rapid transition to a new economic cycle. I would like to point out the fact that from structural perspective Romania's economy has never looked better than now and I refer to the fact that if we apply Cobb-Douglas production factors we notice that capital and multiple productivity factors have a relatively balanced contribution to what that means annual GDP potential dynamic, and that is a signal that the structure of internal economic structure is very resistant. Now, this resistance is confirmed by a series of other indicators, Radulescu said.
According to him, indicators also include the significant growth of direct foreign investments, which reached 5 billion euros in the first 9 month of 2021, being the highest level since 2008. Also, despite ll shocks with which Romania's economy was faced in 2021, at the end of October the risk premium due after 5 years was at low level.
Present at the conference “Lessons learned in pandemic. What comes next?”, a debate with Romanian economic, banking and financial personalities, organized by Oxygen Events, Andrei Radulescu said that inflation could get down to the level foreseen by the National Bank for 2023.
In his opinion, an opportunity would be for Romania to be invited to negotiations to join OCDE until the end of 2022.