Page 30 - Economic Outlook Romania 2019
P. 30
RON: expensive or cheap?
Real effective exchange rate REER deflated by unit labour Real effective exchange rate,
(REER), GDP deflator cost (ULC) for the economy export prices deflated
120 140 115
115 130 110
110
120
105 105
100 110
100
95 100
90 95
90
85 90
80
80
BGN CZK BGN CZK 85 BGN CZK
75 HUF PLN 70 HUF PLN HUF PLN
70 RON RON RON
60 80
High inflation differential Increasing wages... Export issues…
…leading to worries about …erasing the …RON a bit expensive
RON overvaluation. competitiveness relative to some peers,
advantage, but not yet but export integrated
into overvaluation global value chains is
territory. mitigating risks.
30
