fbpx Modifica setari cookieuri

SIMILAR ARTICLES

New Renault boss: “Dacia is a miracle. It’s time for the brand to flourish”

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica’s Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

“Putting capacity growth projects planned in Morocco and Romania on hold” – is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Valentin Lazea: Absorption of EU funds could lead to a 4.5% increase of potential GDP

de Victor Bratu 19.3.2017

The International Monetary Fund (IMF) told the officials of the National Bank of Romania (BNR) that a 95% absorption of the European funds would lead to increasing the potential GDP to 4.5%, said Wednesday Valentin Lazea, Chief economist of the National Bank of Romania, at the launch of the “2017 Economic Report for Romania”.

The IMF, which is now in Romania, made a presentation at the National Bank and said that if the European funds could be attracted much better than now and reach 95%, which is a dream, and if this absorption rate would translate into investments where needed, potential GDP, based only on these two elements could be 4.5%. So, potential growth by attracting financing and investments, aside from all other things, demography, health, could be 4.5%. That is not a story I invented,” said Valentin Lazea, according to Agerpres.

He also mentioned Wednesday that Romania reached an excess of demand in the first quarter of 2016.

Between 2010 – 2015, there was a deficit of demand in Romania, which means that expansionary monetary or tax policies would have been justified during that period. When you have a shortage of demand you can afford a tax and/or money relief. Starting with the first quarter of last year, we have a surplus of demand, meaning a positive output and throwing coals on fire now is no longer appropriate. The expansionary tax policy during the excess demand only serves to worsen the blaze right when it should not,” said the BNR official.

According to him, policies should be counter-cyclical.

How we reached from the demand deficit to a surplus? Because the GDP increased year after year faster than the potential GDP. A normal increase that does not have a negative impact is around 3% per year. This is the potential of the current given factors. This potential GDP can be increased by measures of structural reform. The fact that we grew above the potential GDP was OK when we had a demand deficit, but now, the fact that we grow above the potential when we already have an excess of demand becomes a problem because sooner or later that will lead to inflationary pressures and other types of pressures on the public debt and its financing“, added the Chief economist of BNR.

Mergeți în homepage ›

Publicat la data de 19.3.2017

Lăsați un comentariu


NEWS

New Renault boss: “Dacia is a miracle. It's time for the brand to flourish"

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica's Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult