Twin deficits remain Romania's main macroeconomic risk, central bank report shows
<p>The National Bank of Romania (BNR) warns in its latest Financial Stability Report that the deepening of the twin deficits remains the most important domestic risk factor.&nbsp;</p>

<p>Global uncertainties in the context of the multitude of geopolitical events and the deterioration of domestic macroeconomic balances are the two most important systemic risks, classified as severe, to financial stability, according to the report.</p>

<p>According to the document, the two severe systemic risks are joined by two other moderate systemic risks, namely the risk of non-repayment of loans contracted by the non-governmental sector and the risk associated with challenges to cybersecurity and financial innovation.</p>

<p>"The main risks to financial stability in Romania remained at high levels, relatively similar compared to the previous report and to the risk assessments at the European level, in the context of maintaining multiple uncertainties at the global level, both as a result of the escalation of geopolitical tensions and the intensification of armed conflicts, and against the backdrop of an important electoral year at the international level, likely to change the mix of policies implemented at the level of the world's main economies," reads the report.</p>

<p>"Domestically, the growth of economic activity remained at moderate levels, and the deepening of the twin deficits remains the most important risk factor. In this context, the two most important systemic risks, classified as severe, are uncertainties at the global level in the context of the multitude of geopolitical events, the prospect of their accentuation in the coming period, and the deterioration of internal macroeconomic balances," the same source said.</p>

<p><em>iulian@romania-insider.com</em></p>

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