“On the backdrop of two years of fiscal stimulus, 2016 and 2017, external imbalances have grown but have not yet exceeded caution limits (…) The current account deficit is below the 4% but the growth trend seen in the latest period is too strong to be ignored,” said Isarescu at the presentation of the central bank’s 2017 activity report.
The goods balance is deteriorating and that demands more attention to how we stimulate consumption, Isarescu said.
He added there are no systemic risks in sight and the country’s financial stability is solid. The country’s external debt is low and still decreasing and the non-performing loan ratio in the banking sector fell from 22% to 6.7%, he said.