Romania seems to be receiving more attention lately than it actually deserves, according to the article.
Romania’s economy is indeed going up, similar to other European countries which benefit from the improving demand in Germany. At the current pace, the Romanian economy would record a growth of 3-3.5% this year, which is the best performance in the last seven years, FT notes.
At the same time, inflation became negative. Romania’s National Bank will not reduce interest rates as a result of the temporary slowdown in inflation, but the monetary policy interest rate is at an all-time low of 1.75% compared to a peak of 10.25% in 2008, FT points out.
However, these positive factors have started to be outweighed by negative factors such as the crisis in Greece, which Romania is not immune to, the ending of the agreement with the IMF in September, which is unlikely to be prolonged, and the fiscal relaxation measures that the Government is using to avert the attention from Prime Minister Victor Ponta’s legal problems, according to FT. (SourcE: romania-insider.com)