RSS
The rhythm of growth of exports dropped to half and imports go up double against exports (presidential adviser)
The imports accelerated as consumption has increased, in a growth rhythm double against that of exports, which could deepen the pressure associated with the commercial deficit, considers the presidential adviser Cosmin Marinescu.
In this context, he drew attention on the fact that economic growth based on consumption cannot be supported without structural adjustments and the revision of investments in the public sector.
‘In 2016, Romania will be on the stage of economic growth of Europe, with a growth rhythm of over 4% but due to the advance of consumption which, in the first months of 2016 increased by almost 20% against the similar period of 2015. In the next years, it is important for Romania to have external competitiveness, at present the Romanian exports are over 40% of the GDP which puts us somewhere at European average, but the growth rhythm of exports is halved at the same time, as the consumption increased, the imports grow in an accelerated way, double against exports, which could deepen the pressures associated to the commercial deficit’ explained on Tuesday Marinescu in a debate organised by the ministry of public finances.
According to him, to be sustainable, the growth of consumption must be based on sustainable progress in productiveness and income.
In this context, the official considers as essential the boost of investments especially the public ones, taking into consideration that while private investments show revigoration, there is lack of public investments.
At the same time, the presidential adviser drew attention on the slippage that Romania has had since the fiscal consolidation.
‘The fiscal consolidation from the post-crisis period was reversed. The budgetary deficit had, unfortunately a significant deviation. In 2016 the deficit is close to 3%. Not even an agreement with the Troika was sufficient to stop this fiscal deviation. Romania is unfortunately one of the countries in the EU which reverses the trend of fiscal consolidation in the post-crisis period. Between 2015 -2017 the deviation of the budgetary deficit seems to be a very consistent one’ Marinescu said.
According to him, this evolution is, once more, the confirmation of the fact that, without political will and governmental will, the fiscal consolidation cannot stand the electoral cycles.
‘A sign of responsibility for the sustainable development of Romania would be to get out of the trap of pro-cycle policies, namely not to make big deficits in the years of economic boom, as happened in the period before the crisis’ Cosmin Marinescu said.