FIC Head lists project prioritization as key to sustainable growth

Today, consumption is still very, very low, investments are still poor, so when these indicators get a boost again I will be more positive about the prospects of the economy. I don’t doubt that we might see economic growth in 2011, but the real difference will be made by internal consumption," said van Groningen, adding that “it’s become difficult to predict when the economy will start its upward trend. If you look at the banking sector alone, credit demand is still very low, as people keep their consumption in check and refrain from taking loans, which definitely shows that consumer confidence remains unstable.”
Under the current circumstances, investors will take a longer-term view when assessing opportunities and will not look at just one sector of the economy. According to the FIC head, investments are still coming to Romania, the country maintaining its attractiveness, but it needs stronger efforts to maintain productivity. “The main economic drivers for economic revival are investments in infrastructure and in the energy sector. It won’t do us any good to complain, but with unpleasant changes in terms of deficits taking place, and with unpopular measures, such as salary cuts and VAT hikes, investors should carry on and provide continuity and efficiency to their businesses, despite the concerns. Elections are coming, but they must focus on productivity no matter the outcome of the political changes.”
Steven van Groningen also said that investors needed to see clearer policies in sectors such as infrastructure and energy. “I think we need to have more investment in infrastructure, to see more projects completed in Romania and find ways to have a proper prioritization and management of the projects. The real problem is not identifying the issues, but getting things done. Since money and resources are also a limiting factor, prioritization and implementation are becoming vital; right now, we have around 40,000 unfinished projects in Romania.”
Raiffeisen Bank Romania’s CEO believes in identifying a solution and then applying it firmly. “In my own view, the crisis only makes existing problems much more visible. Many of these projects were launched some years ago in the past. Right now, it is time for investors to be fully aware and become more disciplined, prioritize and continue steadily with their investment plans.”