IMF: Current account deficit increase, reason to worry

The increase in the current account deficit is the only reason to worry regarding the Government’s macroeconomic policy, said the head of the IMF delegation in Bucharest, Emmanuel van der Mensbrugghe (photo). He recommended the authorities to maintain the budget deficit and wage policy within limits that would encourage a healthy economic growth, a release of the Government’s Press Office reads. The official of the International Monetary Fund (IMF) met with Premier Tariceanu at the Victoria Palace yesterday, to have the first consultative round of talks with the head of the Government after the end of the stand-by arrangement. Emmanuel van der Mensbrugghe was quoted in the release of the Government’s Press Office as saying that the Cabinet’s fiscal policy, a small increase in controlled prices and the wage policy had helped Romania witness an excellent economic performance this year. The IMF official explained the only reason for concern was the increase in the current account deficit. “He recommended the Government to maintain the same policy of 2006 in 2007 and keep the budget deficit and wage policy within limits that would encourage healthy economic growth,” the release adds. Premier Tariceanu reassured, “there will be no relaxation in either the fiscal or the wage policy,” so that macroeconomic stability could be ensured and economic growth could maintain the same trend as in 2006.