Romanian Business Community Deplores Low Econ Predictability

AOAR president Florin Pogonaru said the leu has carved out a fluctuation range for itself, between RON4.1 and RON4.3 versus the euro, and variations within this margin are not worrisome.

The official added, however, that predictability should take priority and economic forecasts should be based on more than weather reports, which are currently used when budgeting agricultural output.

Economic management on a national level, according to Pogonaru, should be correct, not based on the „utopian” negotiation of an 8% budget gap with the IMF.

According to Pogonaru, the fact that politicians see a good solution in a wider budget gap would cause investment funds to be spent on wages, while the funds to cover the deficit would be harder to find.

AOAR secretary general Cristian Parvan said the local economy can’t maintain the leu at 3.1-3.2 versus the euro, because this would require higher productivity.