IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v11(516)(supplement)y2007i11(516)(supplement)p103-112.html
   My bibliography  Save this article

Romania 2007. Macroeconomic Instability is Back?

Author

Listed:
  • Cristian Socol

    (Ministry of Economy and Finance)

  • Dorin Emil Mantescu

    (Ministry of Economy and Finance)

Abstract

After several years of perseverant implementation, the reform policies we have been pursuing have led to significant and identifiable results. Romania’s economy has continued to perform strongly, although growth is expected to moderate to 6 percent in 2007 on account of prolonged drought effects on agricultural production. Taking into account the annual inflation rate increasing to 6.03 percent (mainly due to a steep increase in food prices and an adverse impact of recent turbulences on world financial markets), National Bank of Romania (NBR) revised the inflation target by 0.7 pp to 5.7% for current year. The general government recorded a small cash surplus during the first nine months of 2007 (0.19% of GDP), largely on account of slow execution of the capital budget. Regarding the economy’s external situation, the already large current account deficit has continued to widen. In 2007, the current account deficit is possible to attain about 14 percent of GDP, with a similarly high level projected for 2008. There are mixed results, which show there are strong risks of macroeconomic instability in the short and medium term, threaths which have analysed in this paper.

Suggested Citation

  • Cristian Socol & Dorin Emil Mantescu, 2007. "Romania 2007. Macroeconomic Instability is Back?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(516)(s), pages 103-112, November.
    • Handle: RePEc:agr:journl:v:11(516)(supplement):y:2007:i:11(516)(supplement):p:103-112
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/suplimente/simpozion_23_nov_2007_en.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:11(516)(supplement):y:2007:i:11(516)(supplement):p:103-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marin Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.