Roubini sees no imminent risk for Romania’s economy

Romania’s economy is not facing a crisis risk, but “the macroeconomic situation is unbalanced,” American economist Nouriel Roubini said at a Profit.ro conference in Bucharest on November 11,.

The Romanian state has oriented most of its expenditures towards consumption and less towards investments in recent years, which has led to an increase of the external deficit, over a budget deficit. The two are worrying, Roubini says, according to Romania-Insider.com.

The economist warns that the deficit could double from 3% of GDP, as estimated by the European Commission.

The wage push largely attributed to public policies only increases such deficits unless it reflects productivity growth, he warned.

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