According to the manager, Romania displays positive signs for beating the average economic growth in European countries in 2013. “Unfortunately, the overall sentiment among people regarding the economy is still negative, regardless the recovery started in 2011 and continued in 2012,” Konieczny stated.
Also, the numbers show that the macroeconomic state of the country is solid. Hence, Romania states a public debt of 33. 3 percent of GDP, which is estimated as low by the manager, comparing it with Czech Republic that states a public debt of 41.2 percent of GDP, Poland with 56.3 percent of GDP or Hungary, with 80.6 percent of GDP. Actually, the average public debt in Europe is 82.5 percent, according to the Templeton’s official.
Overall, the manager’s estimates are that Romanian economy will increase by 1 percent this year, while the local currency should become stronger against Euro. The fund’s representatives expect to see a positive change in the next 12 months in the local economy, as the internal consumption and investments should replace the growth drivers of last year: exports and industrial production. “These two triggers can not anymore sustain the economy in 2013,” Konieczny added.
Also, the manager underlined the need for a better absorbtion of European money in order to boost the investments, as more public auctions for infrastructure workings are completed in compliance with UE standards.
“Nevertherless, the pathway to a future growth is not riskless as Romania’s agreements with IMF, WB and EC end this year and Romania has to repay EUR 5 billion to these financial institutions,” Konieczny said. He states as benefic the signing of a new standby agreement for Romania, as such agreements represent a safe net against the growth of international financial risks and ensure the required reforms in key sectors, including energy and transports.
