Current account deficits and implications on Romanian economy

The current account deficit is becoming a concerning matter with regards to the Romanian`s economy growth`s perspectives, also holding the attention of international financial institutions and rating agencies. Deficits and surpluses with regards to the current account are, to some extent, normal features of each economy and, by definition, do not constitute macroeconomic imbalances that need to be corrected immediately. Even so, by the international`s standards Romania`s current account deficit is a significant one. This paper aims to analyze the reason behind the increased current account deficit and also issue a series of recommendations in order for the economy to function as close to it`s potential as possible.