Prime Minister Ilie Bolojan stated on Digi24 that Romania will inevitably experience an economic contraction following the measures to adjust the budget deficit. He emphasized that it is essential for this contraction to be temporary, ideally limited to one quarter or a maximum of three quarters. Bolojan explained that the economic recovery will depend on the state's ability to correct financial imbalances and to reduce public spending.
"I don't know if there will be a recession or not, but we have one certainty: there is no country where corrective measures for budget deficits have been taken that does not have an effect of economic contraction. There has never been such a thing. So, inevitably, we have a measure of economic contraction. How much this contraction will be, whether it remains at a level where there is minimal growth or whether it is an economic decline, that remains to be seen. But, I told you, there are no measures to adjust these deficits without certain economic contractions. That does not exist. The important thing is that this contraction is not long-term, that it is a semester, a quarter, or three quarters, and then we will see that, through what happens, through the decrease in imports, through the increase in exports, through the decrease in the inflation rate, other economic indicators lead us into a zone where economic adjustments are made and the economy is based on healthier foundations," said Ilie Bolojan on Monday evening, on Digi 24.
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