The Economy as Seen by the National Bank of Romania

According to the Central Bank Governor Mugur Isarescu, investments in infrastructure and education are key priorities.

Leyla Cheamil, 21.09.2016, 14:09

According to the
Governor of the Central Bank Mugur Isarescu, Romania needs structural reforms.
He made that statement at the Annual Central and Eastern European Economic
Forum, organized by Forbes magazine in Bucharest. On the occasion,
Isarescu called for a better absorption of European funds, which would in turn
stimulate structural reforms. The Governor of the National Bank of Romania also
said that macroeconomic balance is of utmost importance, and investments in
infrastructure and education should remain top priorities, because such
investments help increase labour productivity, which is essential for improving
Romanians’ living standards.

Governor Mugur Isarescu: A faster pace
of economic growth is possible. I want to be very clear about this. I don’t
think Romanians should stop at 3-4%, but in order for this growth to be
sustainable and to avoid problems, this faster pace should be the result of the
factors that trigger an increase in the economy’s growth potential. Given that
Romanian economy’s growth potential is affected by delays in public investments
and in the implementation of structural reforms, priority should be given to
remedying the problems that hamper progress in these two fields.

The latest study
conducted by the National Statistics Institute shows that poverty is one of the
biggest issues facing Romania. Half of the Romanian citizens find it very
difficult to make a decent living. The
study took into account the situation in 2015, when over 32% of the Romanian
families could not cover their regular monthly expenses, including bank
installments, utilities and household maintenance. Over 13% of the households
could not afford heating, and over 69% could not afford at least a one-week
vacation.

Sociologist Codrin Scutaru, with the National Institute for Life
Quality, explains: Unfortunately, a
difficult social and economic situation is affecting the social categories that
paid social contributions for a long time and how get back an amount that no
longer allows them to ensure a decent standard of living. Living standards do
not change radically from one year to another. Economic growth is felt after a
few years by the population, and the improvement is rather small.

According to
the study conducted by the Statistics Institute, families headed by women,
people over the age of 65 or families with 2 or 3 children are in the most
difficult situation.