Adrian Codirlașu warns: Romania must grow economically and reduce its deficit before adjustments become more painful

Romania must continue its economic growth while reducing its budget deficit, but the necessary adjustments will be difficult for the population to endure, Adrian Codirlașu, president of CFA Romania, said at the launch of the Newmoney.ro–INSCOP Economic Sentiment Index.

Codirlașu warned that delaying reforms could lead to a more difficult economic situation. He stressed that Romania should continue to pursue economic growth, even if its pace will be slower, and should signal to investors that the reforms will be maintained.

The economist cited Greece as an example of the long-term effects of an adjustment that is delayed or insufficiently supported by the population. According to him, Greece has still not returned to the economic level at which its decline began.

The president of CFA Romania also drew attention to the risk of external shocks, which can quickly change the course of the economy. He recalled the 2008 crisis, when Romania was caught in a vulnerable position, and noted that external markets can decisively influence the results of domestic measures. Codirlașu added that data on public finances must be closely monitored, as they reflect how taxpayers’ money is managed.