Nouriel Roubini in Bucharest: I see no risk of an economic crisis for Romania

Nouriel Roubini stated he saw no risk of an economic crisis for Romania in the future. The statement was made at the Profit.ro conference, held in Bucharest on November 11, named “11 years since the last recession. Are we prepared for an economic crisis?”.

Despite admitting he was not an expert on local economy, Nouriel Roubini proved to be very up to date with the latest developments on the Romanian economic scene. He even pointed out some vulnerabilities regarding Romania:

• the increasing of the state pension quantum with 40% in the autumn next year, according to the law; this will put some additional pressure on the budgetary deficit
• the economic boom, as Romania is one of the top countries in Europe regarding economic growth tendency, doesn’t have any other engine but consumption, partly generated by the increase of the salaries and pensions; Romanian economy also needs investments
• the young and smart choose to go abroad instead of staying in the country, which creates an important lack of qualified workforce with bad effects on a long term for the economy.

Nouriel Roubini is a well known international figure in the economic world. He predicted the American real estate market fall and the recession from 2009. Hence, he’s got the nickname Dr Doom.

His good news for the world at this economic forum was that, in his opinion, the risks for a world recession considerably diminished in the last months compared to the beginning of the year.