{"id":122016,"date":"2017-05-22T00:00:00","date_gmt":"2017-05-21T21:00:00","guid":{"rendered":"https:\/\/rhn.ro\/isarescu-encourages-the-real-estate-market-as-an-economic-engine\/"},"modified":"2026-03-28T13:27:26","modified_gmt":"2026-03-28T11:27:26","slug":"isarescu-encourages-the-real-estate-market-as-an-economic-engine","status":"publish","type":"post","link":"https:\/\/rhn.ro\/en\/isarescu-encourages-the-real-estate-market-as-an-economic-engine\/","title":{"rendered":"Is\u0103rescu Encourages the Real Estate Market as an Economic Engine"},"content":{"rendered":"
Mugur Is\u0103rescu relies on the real estate market for a sustainable economy. However, not on just any segment\u2014certainly not the residential area\u2014but on infrastructure. This has always been and remains one of the most important indicators of economic progress. The fact that work is underway on the Capital’s Ring Road is one of the most significant signals for the BNR Governor.<\/div>\n
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Infrastructure investments make economies grow sustainably, and Romania is no exception to this rule. The problem is that in Romania, infrastructure works are always left for last. And besides being few, they are also decreasing. Nevertheless, the BNR Governor finds encouraging messages in the current activity of the real estate sector.<\/div>\n
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„If we want long-term balance, we must stimulate potential GDP. Infrastructure, research, development. This is where investment should go. I saw that work is in full swing on the Capital’s Ring Road. It is the most reliable indicator,” explains Mugur Is\u0103rescu.<\/div>\n
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The residential sector is more active, but unfortunately, these buildings have low productivity. Yet, the economy is growing strongly, even well above potential, Is\u0103rescu explains. This is why the BNR calls for moderation, especially regarding consumption.<\/div>\n
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„The country has positioned itself well in Europe; imports are moving smoothly, they have settled. Our position was much more debatable. When a price starts to go up, imports appear immediately. It’s both good and bad. But as long as the current account deficit is low, the pressures of excessive demand diminish. We no longer have the same price sensitivity to excess demand. But we cannot afford to have excess demand and further stimulate it,” explains Is\u0103rescu.<\/div>\n
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As for the exchange rate, it should not undergo major changes. At least not regarding the leu. If it were to strengthen, the competitiveness of Romanians on foreign markets would be jeopardized. Imports are favored by a stronger leu.<\/div>\n
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„Our friends from Poland and Hungary come and prove to be more competitive. We do not need an appreciation of the exchange rate. When it appreciates, it creates limited effects; when it depreciates, it can also create panic,” explains Is\u0103rescu.<\/div>\n
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Another danger is represented by wage increases. A wage increase in the public sector will lead to wage increases in the private sector, even if this happens more slowly. The Governor calls for prudence in this segment as well.<\/div>\n

Source: Imopedia\/Media<\/a><\/p>\n

Frequently Asked Questions<\/h3>\n

What type of real estate does Mugur Is\u0103rescu consider vital for the economy?<\/strong><\/p>\n

The BNR Governor emphasizes infrastructure, such as the Capital’s Ring Road, as a vital indicator of economic progress, rather than the residential sector.<\/p>\n

Why is the BNR cautious about the appreciation of the Leu?<\/strong><\/p>\n

A currency that is too strong could harm the competitiveness of Romanian exports on foreign markets, favoring imports instead.<\/p>\n

What are the main economic risks identified by the Governor?<\/strong><\/p>\n

Is\u0103rescu warns against excess demand driven by consumption and rapid wage increases, which could destabilize the economy in the long run.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mugur Is\u0103rescu relies on the real estate market for a sustainable economy. However, not on just any segment\u2014certainly not the residential area\u2014but on infrastructure. This has always been and remains one of the most important indicators of economic progress. The fact that work is underway on the Capital’s Ring Road is one of the most…<\/p>\n","protected":false},"author":0,"featured_media":66721,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2857],"tags":[],"thb-sponsors":[],"class_list":["post-122016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transactions"],"article_style_override":"","post-style":"","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/tranzactii-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/122016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=122016"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/122016\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/66721"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=122016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=122016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=122016"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=122016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}