“Individually speaking, this is a major problem for any dismissed persons. However, a growth by 30,000 of the number of unemployed persons is 0.5% of the labor force. This growth, combined with the current 3-4%, the current unemployment rate, reveals that for the moment, is not a major problem,” said Isarescu (photo), referring to some recent media reports.

Nevertheless, NBR governor warned on a higher growth of the unemployment rate, above 30,000.
“The example I gave is not lessening the peril of the unemployment rate. The figure may be higher,” the governor added at ZF gala.

As for the gross domestic product, Isarescu estimated that the level estimated for this year of 140 billion euros is 6,500 euros GDP per capita, a lot higher than nine years ago, when Romania was on the brink of default.

“In 1999, the overall GDP was 33 billion euros, and per capita was 1,500 euros. The current budget of Romania is a lot higher than the country’s gross domestic product in the past ten years,” Isarescu explained.

On Wednesday night, first vice governor of National Bank of Romania (BNR), Florin Georgescu, said Romania was likely to report an economic growth within 4-4.5% band.

At this point, the vital query is what will be adjusted first in Romania, consumption or investments, given the fact that the international context is not leaving much time for hesitations, said Mugur Isarescu.

“I hope the wisdom will prevail against impatience, and the risk of a sever downdraft will not materialize,” Isarescu added.

He also explained that the adjustment of Romanian economy’s growth pace will come along, “whether we want it or not” and will have to take place after many years of growth in consumption, as aspirations have detached from possibilities.

“It is recommended to take into consideration an early adjustment of internal demand, as long as we still have a significant economic growth. The question is what will be adjusted first: consumption or investments”, said BNR governor.

“Adjustment of investment cannot delay. We have a choice: whether a smooth adjustment, resulted from inside efforts, or induced by the external capital market, which will not be smooth or with reasonable proportions,” he added.

Translated by Camelia Oancea