The Romanian economy is stable and ready for a new growth cycle, says central bank governor

Newsroom 09/03/2011 | 15:06

The Romanian economy has stabilized and is now ready for a new growth cycle, said Mugur Isarescu, governor of the Romanian National Bank (BNR) during the Gulf-Cooperation Council – Romania economic forum organized by Forum Invest in Bucharest.

Although the recovery took longer that it was initially estimated, Isarescu argued that current data shows that the probability of recurrent economic imbalances is reduced. The governor also emphasized that this time the economic growth should be a sustainable and export driven one.

Romania’s external debt has decreased from about 12-14 percent in 2008 and 2009 to 5 percent. “We hope to remain in the 4-6 percent limit which is a sustainable level,” the governor stated. Regarding inflation, Isarescu said that BNR hopes to bring it below 4 percent by the end of the year. He added however, that there are “reasons for worry”. Overall, the Romanian economy is estimated to grow by 1.5 percent in 2011.

The local sectors recommended by the governor to Gulf investors are infrastructure, energy, agriculture and tourism. “We should give foreign investors the confidence that they will invest in a stable and predictable business environment. From the perspective of BNR there are considerable opportunities to set up solid and profitable businesses on the long run in this country,” said Isarescu.

But more than money, Romania needs entrepreneurs, the governor argued. “What does this country need? Not money, but entrepreneurs capable to deliver projects. We are a country where too many projects have been started and not finalized,” Isarescu said adding that there are 40,000 such projects. In his opinion this explains why, although Romania has an investment budget, the results fail to appear.