Romania’s Economy Unlikely To Grow In 2011 Unless Govt Boosts Public Investments – Ctrl Bk Gov

Romania’s central bank governor Mugur Isarescu told Pro TV in an interview Sunday that the country’s economy is unlikely to grow in 2011 unless the Government allots more money for actual, not statistic investments, considering that it is more difficult for the private sector to get back on track.

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He said the Government should invest in those sectors "able to move the economy" and referred, among others, to the country's obsolete transport infrastructure, which, he added, needs more funds from the state budget.

Isarescu stressed he believes Romania's economy will improve significantly if the Government allots more money for investments from the beginning of 2011, adding the state must continue and even speed up structural reforms.

Isarescu on Friday said Romanians will notice an improvement in their living standards in 2012, even thought the economy could start recovering in 2011.

"An improvement in living standards will probably be felt by the population in 2012, but this does not mean the economy will decrease in 2011. Our expectations point to 1.5% economic growth next year, maybe more," Isarescu said Friday.

Thus, while Romania had in 2008 a $9,500 GDP per capita, the index fell to $7,500 last year and $7,390 this year. Expectations place the indicator at $7,700 next year, $8,700 in 2012 and $9,800 in 2013.

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