The significant slowdown in the economy has to be put down to the effects of inflation, the falling purchasing power of the population and the major problems faced by more and more companies, amid falling sales, from financial bottlenecks to a drop in supplier credit, said economic consultant Adrian Negrescu. According to the data published on Thursday by the National Institute for Statistics (INS), the GDP was not changed in Q3 of this year, as compared to the previous quarter, for a seasonally adjusted series, while against the same quarter of 2023 GDP dropped by 0.2%."The economy is operating with the handbrake on. Statistical data confirms that we are witnessing real economic stagnation, with many sectors where sales are falling significantly and the number of companies closing is increasing by the day. The significant slowdown in the economy has to be put down to the effects of inflation, the falling purchasing power of the population and the major problems that more and more companies are facing, amid falling sales, from financial bottlenecks to a drop in supplier credit," said Mr Negrescu. He said that, unfortunately, the industrial production has been dropping for months, the constructions register the highest drop since the previous crisis, agriculture is very much affected by the drought and commerce gives the first signs of dropping due to the reduction of purchasing power."Even the IT&C sector is no longer making a positive contribution to GDP, the economy is gasping for breath, and the outlook for 2025 does not look good. It's a paradox what is happening in Romania - we have borrowed almost €50bn, the deficit will pass €27bn, we have allocated more money for investment and yet the economy is heading for recession. It's a sign that the situation is not positive at all and that measures need to be taken", added the economic consultant. According to him, it is ‘absolutely vital to drop the work taxes, in order to leave more money in the people’s pockets’. He said that ‘ we will not be able to restart the economy unless we take measures meant to support private investments, recruitment and increase of salaries’.
Romania’s prime minister Ilie Bolojan reportedly opposes the idea of further prolonging the price-capping mechanism introduced in August 2023 and repeatedly extended so far, according to Ziarul Financiar. Ambiguous statements over the weekend indicated an incipient conflict among the ruling coalition’s...
Several thousand civil servants rallied in Bucharest on September 15 to oppose government reform plans that would reduce public administration staff, Radio Romania Actualități reported. Protesters gathered in Victoriei Square before marching to the Palace of Parliament,...
A memorandum establishing a new stock exchange in the Republic of Moldova was signed on September 15 in Chișinău, with the Bucharest Stock Exchange (BVB) set to play a key role as shareholder and technology partner, according to Bursa.ro. The new Moldovan exchange will run...
The “service pensions”, also known as special pensions, paid to civilians (military not included in the report), cost the state budget and the state social insurance budget a total of RON 2.2 billion in 2024, over 22% more than in 2023,
The Czech company Tesla has officially announced to the government and local authorities that it is abandoning the project to build the energy storage factory in Brăila, an investment of EUR 90 million that was also to receive state aid, according to
Romanian households' purchasing power has deteriorated in July, both as a result of slower nominal advance (+5.2% y/y, the weakest in four years) but also because of a sharp rise in inflation (7.68% y/y) following the VAT rate hike, according to data published by the statistics office INS. The average net wage dropped by 3.0% […]
