Risk Prospects and Challenges in the Romanian Economy

Tackling challenges in order to promote competitiveness in various economic sectors requires understanding and approaching the risk assessment as an essential factor that can anytime determine the availability of the mechanisms and resources needed for a sustainable future. Although a certain amount of risk has to be assumed, losses caused by specific events appear to be broader than gains. In order to ensure economic growth, it is challenging for governments to try to manage the exposure to losses, this being the reason why they play a key role in fundamental prediction and in finding the most suitable evaluation tools. Despite the struggle against global strains and political risks, uncertainty not only persists in association with the external environment, but it reached extremely exalted levels compared to recent history. The instability of the global environment is leading to a lot of economic decisions being put on pause. Uncertainty’s effects about a nation’s economic policies can often spread beyond the country’s borders, this being the reason why a possible deterioration of the macroeconomic equilibrium is expected to have a significant impact on the risk perception, with direct consequences upon the Romanian economy. The aim of this article is to outline not only the existing economic framework in Romania, but also its future development in a macroeconomic context driven by uncertainty.

JEL classification: E66