The economic researcher said the US central bank’s decision to cut back on its economic stimulus program will have a limited impact on the Romanian economy.
“Eventually, tighter global monetary conditions could lead to a slowdown in capital inflows to Romania. But Romania now seems relatively secure – its current account deficit has narrowed sharply over the past year or so, meaning it is less reliant on portfolio inflows,” Capital Economics analyst William Jackson told Mediafax by email.
“Also, it’s worth noting that the leu came through the summer sell-off in emerging market assets relatively well.”
Capital Economics estimates the leu will stay at around 4.40 to the euro over the next couple of years.
The economic researcher said Romania could witness “slightly higher” borrowing costs in the following period, depending on the developments in the eurozone, but the increase would be gradual.