Development and Prognosis Minister Leonard Cazan claims that the economy overheating is out of the question. "It is too early to talk about overheating," Leonard Cazan told Ziarul Financiar. "Our estimations for this year point out that the industrial output growth will not exceed 6%, a level which does not mean that the economy is overheated," Cazan said.
The steady growth of the industrial output and the simultaneous awakening of the domestic demand, which absorbs more and more imports, having led to 1.2 billion dollars current account deficit is increasingly suggesting that the Romanian economy is beginning to overheat after it "defrosted" last year.
The macroeconomic situation, however, does not reflect the features of the economic "overheating", but actually a rampant evolution of several parameters, which are more and more difficult to control.
The idea that the Romanian economy is overheating was launched last week by Premier Adrian Nastase, who said that the GDP was likely to go up by more than 5% this year and that even "an overheating" was noticeable in the economy, which should be carefully monitored.
Leonard Cazan says that the GDP growth pace will most likely reach 5%, but the most pessimistic expectations say it would stand at 4.5%. This estimation is backed by the favourable outlook of the EU economies, which might resume growth at the end of this year.
Development Minister says he is "more than positive" that the inflation rate will confine to 30% this year, in spite of the negative influence of electrical and thermal power price increases.
The estimated volume of the foreign investments will amount to 1.4-1.5 billion dollars, against 1.7 million dollars forecast earlier this year.
According to Cazan, the imports of equipment for investments will slow down this fall, as the already purchased ones will begin to operate. Furthermore, Cazan claims that the domestic demand will begin to absorb the stocks having risen during the past months.
According to the preliminary statistics, the ratio between the exports and the imports seems to have improved in June, leading to a smaller deficit.
The exports accelerated their increase and exceeded the monthly threshold of 1 billion dollars for the second time this year, while the value of the imports stood around 1.350 billion dollars.
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