The prolongation of the Gulf crisis could accelerate inflation in Romania. Ilie Bolojan's announcement
Prime Minister Ilie Bolojan draws attention to the fact that the tense developments in the Gulf area risk affecting the Romanian economy, especially through the increase in fuel prices, which, as we are used to, leads to price increases in the chain.
Ilie Bolojan blames the conflict in the Gulf for the increase in inflation. PHOTO: Inquam/George Călin
Prime Minister Ilie Bolojan declared on Wednesday, April 8, in a press conference held at the Victoria Palace, that the geopolitical developments in the Middle East can have direct consequences on the Romanian economy. According to him, the increase in fuel prices, determined by the tensions in the Gulf area, risks amplifying inflationary pressures in the coming period.
“With the Gulf crisis continuing, which I hope will not happen, obviously, the increase in fuel prices will have an impact on the increase in the inflation rate. As we see, the interest rates on the international markets have increased and we will inevitably have some effects in the market”. stated Bolojan, emphasizing that Romania depends on developments in the global energy markets.
The prime minister warned that a prolongation of instability will directly affect the parameters on which the state budget was built for this year.
“If these things drag on, surely the indicators estimated through the construction of the budget, through all the predictions that have been made, will be affected”, the head of the government also said.
“I hope this does not happen. Depending on the evolution of the situation, we will adapt to the things that happen in the markets, in such a way as to maintain budgetary stability in Romania and, of course, to ensure conditions for development even in these conditions”, concluded Ilie Bolojan.
The statements come as international markets are already seeing increases in oil prices, and economic analysts warn that inflation could become a major problem in Europe again if tensions in the Gulf region persist.
