A note to clients of the largest American investment bank, Goldman Sachs, analyzed by Profit.ro, points to a positive outlook for Romania in the short term, but warns that risks remain in the medium term. Current account deficits and inflationary pressures are cited as problems that could threaten Romania’s economy.
Romania is in a mode of economic activity, but wage growth is strong, according to Goldman Sachs’ key emerging markets paper.
The economy slowed in the second half of last year, in line with the general behavior of countries in the region, but the labor market was strong, with an annual average increase in workers’ incomes of 13%.
Inflation is rapidly decreasing, but inflationary pressure remains high.
The expectation of Goldman Sachs bankers is that the BNR will maintain the intervention interest rate at 7% during 2023, reports Profit.ro.
For Americans, external imbalances remain a major cause for concern. The current account deficit is 9%.
The inhibiting factor is that 2024 will be an electoral “super year” with parliamentary, presidential, local and European parliamentary elections. “Failure to reduce the budget deficit will increase both fiscal and external risk,” said Goldman Sachs.
Source: Hot News
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