Home » 2017 » December » 8 » Romania looks like a true tiger of economic growth in the EU
By R. Constantin
Although superficially viewed by economic analysts and journalists from inside and outside, Romania's economic growth is the strongest among EU member states.
For 15 quarters, Romania's economic growth is higher for both the EU-28 average and Central and Eastern European countries. If by 2014 Poland was the "star" of the economic growth in the European Union, its place was taken by Romania. In 2015, GDP growth was 4.0%, in 2016 it was 4.8%. In 2017, economic growth will exceed 7%. Much above the EU.
In the third quarter of 2017, Romania recorded an economic growth of 8.6%. Nearly four times higher than in France, more than three times higher than in Germany, 2.5 times higher than in Austria, two times more than in Hungary, much higher than in Poland (5.2% ), Czech Republic (5%) or Slovakia (3.5%).
What sectors have contributed to the rapid rise in GDP?
To the disillusionment of those who underestimate Romania's efforts to maintain the economic growth in the EU and recover from the economic gaps towards developed countries, GDP growth is not only made by internal consumption.
Here it is worth mentioning that most analysts condemned the increase of domestic consumption as a major disadvantage of the dynamics of the Romanian economy. Why? The increase in domestic consumption is due to the increase in the incomes of the individuals and the companies.
Romanians, individuals or legal entities, spend more not only for food, but also for endowing with machines and equipment to equip companies with modern equipment. Whoever visits an agricultural farm in Romania will be amazed that the technical endowment is the latest generation. As a result, the productivity has increased, the production / hectare in Romania is now very close to that in strong states.
The internal consumption brings progress and increases efficiency in economic activity. That's how it was in many Western states.
We do not fetishize the domestic consumption as a primary factor of economic growth.
The internal consumption is not the main driver of economic growth in Romania.
Here are the resources that contributed to the 7% growth of GDP in the 9 months of 2017, according to the National Institute of Statistics:
"All sectors contributed to the GDP growth in the period 1.I-30.IX 2017 as against the same period of 2016. Significant positive contributions have the following sectors:
- Industry (+ 1.8%), with a share of 23.2% in GDP, whose activity volume increased by 7.6%;
- Wholesale and retail; motor-vehicles and motorcycles repair; transport and storage; hotels and restaurants (+ 1.6%), with a share of 18.2% in GDP, whose activity volume increased by 8.7%;
- Agriculture, forestry and fishing (+ 1.1%), with a smaller share in GDP (4.9%), but which recorded and significant increase in activity volume (24.3%);
- Professional, scientific and technical activities; (+ 0.7%), with a share of 7.1% in GDP, whose activity volume increased by 9.8% ".
The statistical data in October and November shows that public and private investment has returned to strong growth, and agriculture will contribute more than 6 percent to GDP growth.
Under these circumstances, Romania's GDP is projected to grow by 7% -7.3% in 2017.
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