Isarescu: A correction of the external deficit is inevitable

A correction of the external deficit is inevitable and a 1 percent correction, from 14 to 13 percent of gross domestic product (GDP), is very costly, said National Bank of Romania Governor, Mugur Isarescu. One of the consequences of a correction is that it leads to an increase in inflation, and as such a sudden correction is not recommended. Mugur Isarescu clarified that if a correction were made using fiscal measures the inflationary effect could be avoided. The current account deficit is expected to reach 13.6 percent of GDP in 2008.