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Romania Feels External Shocks Harder Than Other Countries In The Region –IMF Adviser

International shocks have a bigger impact on Romania than other countries in the region and investor sentiment worsens on the country’s unpredictable economic policies and lack of measure to narrow deficits, said International Monetary Fund adviser Mihai Tanasescu.
Romania Feels External Shocks Harder Than Other Countries In The Region –IMF Adviser
23 mart. 2008, 16:20, English

The effects of the credit crunch have so far been felt directly in sectors where foreign capital inflows are at work, such as capital markets and the forex market, but they have also been felt indirectly boosting inflation and slowing down the country’s economic growth Tanasescu told MEDIAFAX in an interview.

A former finance minister, Tanasescu considers the country’s economic growth will near that registered in 2007, but will slow down by 2009, when the whole of Europe will fully receive the shock of financial market turmoil.

Tanasescu warned that securing a safe landing for Romanian economy must be accompanied by adequate fiscal and monetary policies, and a cautious coordination of commercial policies, to help absorb and overcome external shocks.

He added a firmer commitment from authorities to the eurozone convergence program would boost the country’s credibility and would help stabilize the Romanian leu.