Economist: Romania is closer to adjustment or recession than we think

Economist Lucian Croitoru, an adviser to Romania’s National Bank governor Mugur Isarescu, thinks that Romania is closer than most people think to adjustment, that would bring its production to the potential, or to a recession, if adjustments are not made in due time. “If the GDP gap closed almost three years ago and the economy has been increasingly stimulated ever since, it means that we are in full boom,” Croitoru said, reports local Mediafax. He thinks that the relaxed monetary policy and tax policy have stimulated the economy to grow over its potential, which calls for adjustments. “Romania’s actual GDP exceeded its potential level already in 2013,” he added. editor@romania-insider.com