The Romanian economy is more vulnerable to crises than in 2008, according to a study presented yesterday by Iancu Guda, president of the Romanian Association of Financial and Banking Analysts (AAFBR).

The local companies’ average debt collection time has increased, whereas their capitalization is lower. Moreover, the middle class has shrunk compared to 2008. All these factors have made the Romanian economy more vulnerable.

The current macro-economic data are similar to the ones in 2008. These indicate an economic growth driven by consumption, which leads to higher trade deficit, lending growth and higher fiscal deficit, according to Guda. The current account of the balance of payments saw a deficit of EUR 2.7 billion in the first six months of the year, up 40.2% year-on-year, according to Romania’s National Bank (BNR).

Romania’s labor force has shrunk compared to 2008 whereas the public debt has increased, according to Iancu Guda.

editor@romania-insider.com