“The adjustment which Romania must make involves a change in economic models from growth based on consumption to economic growth based on a greater amount of exports. What is important how foreign investors vote with their money, and they are very reluctant as concerns countries with large foreign deficits and who live beyond their means,” said Lazea, explaining that his declarations are from the perspective of an economist, not on behalf of the central bank.
Lazea believes that structural policies must be directed to the stimulation of transport and tourism services. He said that Romania is the only country in Central and Eastern Europe that has a deficit in tourism and a balanced transport current account, both of which have great potential. The BNR economist added that Romania has more navigable ways than Great Britain, one of the world’s first railway networks, but only one airport for 1-5 million passengers.
Furthermore, Lazea considers that other solutions to encourage economic growth are wage increases below productivity, and an increase in excise taxes on fuels. In order to stimulate exports, the leu must not be allowed to appreciate, even if a strengthening of the national currency would help inflation.
Present in this same conference, Tony Lybek, Representative of the International Monetary Fund (IMF) in Romania, reiterated that the financial institution will remain firm in terms of the budget deficit for 2009, of 5.9 percent. Lybek stressed that the IMF will maintain this target even if Romania does not manage to overcome its political crisis. He added that the Fund will be open to changing the target, as was the case in March, if the macroeconomic framework changes. The IMF Representative said that no date has yet been set for a new mission to Romania, and that the public deficit target for this year remains at 7.3 percent of gross domestic product. At the end of the first 11 months, this reached 6 percent of GDP, according to the first calculations published by the Ministry of Finance.
