The political instability brought by the new sovereignist trend and its representatives, the out-of-control budget deficit and the weak growth of the economy have already begun to be taxed by foreign investors. Moreover, the lack of predictability in politics, which also translates into the economy, could further remove the money flows that Romania needs to avoid an economic collapse. According to Andrei Caramitru, an economic analyst with 16 years of experience at McKinsey, one of the largest audit companies in the world, the first reaction of investors after the outbreak of political chaos was to freeze or even stop investment plans. «Investors want to have predictability and that the rules of the game are respected in the country in which they invest. We may have a more abrasive president, but as long as you know what he wants to do, I can make you a plan. What happened was an enormous shock. After the first round, I was in discussions for 3-4 investment projects in Romania, which were immediately frozen, some even said stop the game» said Andrei Caramitru during the ZF Live show made with the support of Orange Business. The economic analyst claims that the model of loans that are ultimately transformed into consumption is unsustainable. Because of this, Romania needs more and more money to finance an external debt that will always increase to support consumption and the economy. «Our problem as a country is that we are dependent on financial flows coming to our country. Deficits are not necessarily bad, they are a representation of the fact that we are an investment destination, when the world invests this is transferred to deficits. We need 6-7% of the GDP as money to enter the country annually and we also need to refinance the debt,» Caramitru said at ZF Live.
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