Romania needs to learn from its own mistakes, from the previous cicle of its development, Romanian Central Bank Governor Mugur Isarescu said on Friday in a speech at Cluj, central Romania.
A GDP increase over the economic capacity of the country can lead to a overheating of the economy and to inflation, Isarescu said. He added that after a forced increase, recession joins in and in 2009 the budgetay deficit was 9% not 5%.
According to Isarescu, the model to accelerate economic growth practiced by Romania stimulated consumption but not investments in the Economy like it happened in Poland or in Hungary.
Isarescu said he finds it difficult to explain to foreign partners the hardships of this country. He underlined the opportunity of a festina lente in the national economy.
Romania needs to learn from its own mistakes, from the previous cicle of its development, Romanian Central Bank Governor Mugur Isarescu said on Friday in a speech at Cluj, central Romania.
A GDP increase over the economic capacity of the country can lead to a overheating of the economy and to inflation, Isarescu said. He added that after a forced increase, recession joins in and in 2009 the budgetay deficit was 9% not 5%.
According to Isarescu, the model to accelerate economic growth practiced by Romania stimulated consumption but not investments in the Economy like it happened in Poland or in Hungary.
Isarescu said he finds it difficult to explain to foreign partners the hardships of this country. He underlined the opportunity of a festina lente in the national economy.
