Central bank governor: Romania lacks workforce

Romania’s National Bank (BNR) governor Mugur Isarescu thinks that Romania is now facing something that was difficult to predict, namely the lack of workforce. Demand is increasing, and so is the production, but they run into this obstacle, Isarescu added. The internal demand has been overstimulated, which led to a growth in imports, because the local production couldn’t keep up. Isarescu spoke at the conference where he presented the report on inflation. He avoided talking about the impact the recent wage growths could have on the macroeconomic stability. He said that the law has not yet been promulgated. However, he made a few references to the experiences of previous elections, when populist measures had been reversed after elections. At the beginning of this week, the Parliament approved several wage increases in the public sector. editor@romania-insider.com