Romania recovers, but below the trend and each day there is an event with a negative effect on the global economy, Nouriel Roubini, also known as Dr. Doom of the economy in an economic seminar said. He said that economic recovery in developed economies is not V shaped but U.
Here are his main statements:
- Greece, Portugal and Ireland have very fragile banking systems just like countries in which there was a real estate boom
- For Romania, Hungary the reform has been tough but it starts to give results
- Many banking systems have been exposed to risks
- Banking risks became more aggressive. Banks own a part of the governmental debt
- There is not just debt and deficit, there is also private debt and deficit. These countries lost their competitiveness to Asia. We have the problem of competitiveness and the external deficit. How are we to solve them?
- We need to clean up the financial system and manage to have a sustainable economic growth
- These problems can be solved in many years to come. Part of these country are insolvent, like Greece that even if it would have implemented 100% the reforms asked by the IMF they could not decrease debt as initially announced
- Ireland, Spain, Portugal lost access to the markets because they implemented wrong policies