BNR governor Mugur Isarescu presented a current account deficit analysis during "Aspects of the saving process in Romania" symposium. Talking about the economic growth from the last years, he said: "The temptation was huge. We were at pains with avoiding the current account deficit for the last fours years. In the '90, we knew who was Romanian judging by the number of plastic bags they were bringing in. There were no shopping centres internally. But that is not the case anymore", he explained.

Main statements

One can't say that it is a bad thing for a country to have account deficit.The country went through a dramatic experience. For ten years, it struggled to pay foreign deficits that it had created. These cycles last for generations.The increase in the account deficit is difficult to avoid if we consider the cyclical nature of capital inputs.The temptation was huge. We were at pains with avoiding the account deficit increase during the last four years.I was not expecting Romania to become a shopping centre so soon.In the '90, we knew who was Romanian judging by the number of plastic bags they were bringing in. There were no shopping centres internally. There are no Romanians carrying plastic bags in airports because there isn't the need anymore.The current account deficit could have been reduced if certain unsustainable conditions from the private sector would have been compensated through the public sector acting prudently.The unsustainable conditions in the private sector are:- the increase of the real incomes in a rhythm superior to the production gains;- the highly increasing credit trend.Starting with 2006, the saving rate increased, but we also started to consume more because it was easier to get foreign money.The inevitable happened when the source disappeared.I did not assist to money being redrawn from Romania, but money has not been broug