Natalia Gavrilița: Inflation does not help economic growth, but sometimes it is the result of it

Inflation does not help economic growth, although sometimes it is the result of economic growth. Inflation creates more uncertainty for economic agents, said Prime Minister Natalia Gavrilița during the Vocea Bessarabiei show.

“So the fact that inflation is coming down is a good thing. At the same time we are in a period of economic recession, so the economy is going down. This is the result of the continuation of the war in Ukraine, the logistics crisis, the energy crisis, the prices that have been high. All these effects are being felt and that is why we must make an additional effort to bring the economy back on track for economic growth.

That is exactly why we came up with a fiscal policy that comes to encourage the maintenance and increase of the number of jobs. Here I am also talking about zero tax on undistributed profits for small and medium-sized enterprises. I am talking about accelerated depreciation for large enterprises when they make investments, and I am talking about the return of VAT transferred to the account. And this will be done for businesses that issue electronic invoices and do their business correctly and transparently”, Gavrilița pointed out.

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On Wednesday, the National Bureau of Statistics published data on inflation for the year 2022 and it shows a moderation of it. The price advance in 2022 was 30.2%.

The price increases in December were influenced by food products which rose in price by 31.8%, non-food goods by 19.9% and services provided to the population by 44.0%.

The Governor of the National Bank of Romania, Octavian Armașu declared that: “we have passed the peak of inflation, which was in October, we are entering a period of decline. This creates conditions for a stimulative monetary policy. We have to be cautious due to external risks”.

The NBM forecast inflation of 32.2% for 2022 and 26.3% in the first quarter of 2023

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