Reports show Romania’s economy needs development

Eurostat, EU’s Statistics Bureau, made public the first data regarding the economic situation of 27 EU country members. The report shows that comparing with the largest EU economies the Romanian economy has to develop very much although it received the status of a functional market ever since 2004.

Eurostat shows that Romania and Bulgaria represent approximately one per cent of the EU’s total foreign trade in 2005. The Gross Domestic Product (GDP) per capita in Romania was of 34 per cent of the average EU GDP. Eurostat says that while the per capita income is EUR 3657 in Romania in EU the average is EUR 23,402.

According to Eurostat, Romania has an economy that results in only 0.7-0.8 per cent of the EU members GDP, amounting to EUR 10,000 bln, Romania’s GDP being only of almost EUR 100 bln.

Another significant aspect showed by Eurostat is that in Romania the agriculture has a 10.1 per cent share in the GDP comparing with the rest of the European countries where the average is of 1.9 per cent Romania improved its unemployment situation having a rate of 7.6 per cent, under the European average of 7.9 per cent.

Regarding the inflation rate, Romania’s annual rate was of 4.8 per cent comparing with the EU average rate of 1.8 per cent. Eurostat shows that the EU countries showed a general deficit regarding exports, the Romanian exports amounting to EUR 6.7 bln comparing with the EUR 1,041 bln average.

EU’s trade deficit was of EUR 25 bln, the total exports surpassing EUR 1,051 bln while the imports were higher, of EUR 1,176 bln.

The industry sector produces 30.7 per cent of the added value in Bulgaria and 35 per cent in Romania, shows Eurostat, underlining that the most important contribution to the added value is brought by the services sector.

In Romania the services sector has a contribution of 54.9 per cent while Bulgaria shows a 60.7 per cent contribution.

A report issued by the European Commission in November 2006 showed that in the last one and a half years, the Romanian economy lost very much of its competitiveness and productivity. The economic growth rate fell dramatically in 2005, to 4.1 per cent, from 8.3 per cent in 2004, while all the productions, except the governmental ones, point for the current year to a growth of GDP by values that turn around five per cent of GDP. The slowing down of the disinflation process also does nothing but defers endlessly the restructuring of the national economy. The downturn of the inflation rate to values around three per cent represent the most important real convergence criterion demanded from a future EU member state.

The European experts confirm the predictions of the domestic and international analysts, who consider that the commercial deficit and the current account one will steadily grow in the next two years.

The Times: Romania and Bulgaria grow at lesser pace than Spain and Ireland

LONDON - Romania and Bulgaria have a nice dream, say the British from ‘The Times’ The British daily believe that the wish of the two countries that have just joined the European Union to step in the footprints of Spain or Ireland might be impossible to fulfil, because the two new member states are much poorer than Spain or Ireland were when they joined the EU. ‘The Times’ does not deny Romania and Bulgaria credit for their rapid transformation but notes that the two lack the institutions which those countries had at that point. Another argument is that, when they acceded, Spain and Ireland were joining an exclusive club of rich countries. When Spain entered the EU in 1986 its economy, per person, was 70 per cent of the group’s average. Spain’s GDP per person is now 80 per cent of the average of those 15 longstanding members – EUR 27.600 per capita, in 2006. Ireland has eclipsed that performance, with GDP per head of €40,900. Romania and Bulgaria are far behind, with GDP per head of less than a sixth of the average of the EU 15, which is a much worse position than Spain’s when it joined.

Source: nineoclock.ro