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Isarescu: Economic growth over 6 pc in case of good agricultural year

Romania will maintain the positive growth pace, over 6 percent in the second half of the year, in case of a good agricultural year, Governor of the National Bank of Romania (BNR) Mugur Isarescu said on Wednesday in a seminar on economic prospects in Romania, held at the bank's headquarters.

'I think the economy will be over our estimates, but that depends on the agricultural year. The difference between a good and bad agricultural year is 1 billion euros,' said Isarescu. He said that Romania's economy uses all its advantages for the economic growth, but these must be used carefully to avoid critical points. 'The overheating is not necessarily a negative thing, by definition. It defines an economy using its chances, but who must do it carefully. Romania has many signs of being in this situation, namely the drop in unemployment down to the limit, the current account deficit and the gap between investment and saving of 50 percent,' explained the governor. Isarescu said that the positive trend in economy corroborated with the central bank's restrictive policy shows that the economy found domestic resources for investment, especially in the private sector. He appreciated as good the stop in wage increase in the public sector, while the inflation in May confirms the positive evolution estimated by BNR. We are happy to see that the food prices are not going up, as estimates said, said Isarescu. The National Statistics Institute informed that inflation in May went down 0.49 percent, and the annual inflation (May 2007-May 2008) dropped to 8.46 percent. In April inflation stood at 0.52 percent. The Governor said that the domestic economy has some vulnerabilities to be eliminated, such as the economy generating imports, the banks' financing from own sources, creating an imbalance between resources and investment and the boom of the real estate market. 'The most dangerous vulnerability is the euphoria caused by the extremely rapid evolution of crediting,' the Governor concluded. Sursa: http://www.rompress.ro

Tags: percent economy isarescu agricultural growth economic bnr