Central Bank official: Romania's economy can grow by 5%, but only with unpleasant measures

Romania’s economic growth now reaches 3% per year, but its potential could be higher, amounting to 4-5% per year. However, this can’t be achieved through fiscal and monetary policies, but with unpleasant measures, which are costly on the short term, but have positive effects on the long term, said Valentin Lazea, chief economist of the National Bank of Romania. Romania has a very good macroeconomic situation, and it would be a shame if the hard-won stability were lost due to policies with a short term horizon, he added, cited by local Agerpres. The country should attract more foreign investments in order to stimulate the capital, and needs to channel them to tradeable sectors, and not to areas such as real estate, financial services, or shopping malls. Economic growth should be stimulated via investments and exports, rather than consumption increase, Lazea said. He also said that public health was an important aspect for economic growth. The Government’s decision to increase salaries in the health system is positive, but the distribution should focus on quality and performance. editor@romania-insider.com