Economic Recovery

The tough austerity measures implemented by the Government in Bucharest ever since the first months of the financial crisis have sparked the anger of most of Romania’s population.

The measures eventually led to an economic growth that many EU countries now envy. While other states are still in trouble due to the prolonged effects of the recession, facing high unemployment and the inability to put a lid on their budget deficit, Romanian authorities have announced the first signs of economic recovery.

Romanian economy will continue its upward trend this year, Minister Delegate for Budget Liviu Voinea has announced. In 2014 Romanian economy has every chance to exceed its performance last year. In other words, data collected so far are indicative of a potential economic growth of 3.5%, tantamount to the highest rate at EU level in 2013. Liviu Voinea.

“In the first quarter of 2013 Romania’s growth went up by 2.1% as compared to the same period of 2012. In the first quarter of 2014 the growth rate will certainly be above 3%, and may go as high as 4%. This leads us to believe that in 2014 economic growth will be equal if not higher than the one in 2013”.

The confidence of the population, the business and the banking sector in the local economy is reflected in consumption and investment. This is precisely why Minister Voinea called on Romanians to consume more, thus boosting economic growth. Voinea also told companies to take out loans and make investments, while banks have nothing to fear when giving out loans for consumption and investment.

“The state will not repeat any of its economic policy mistakes up to 2008, nor the brutal measures of 2009 and 2010. On the contrary, as a sign of confidence, the state will increase its public investment program by approximately 1 billion euros as compared to 2013, given that the budget deficit continues to shrink”.

Another sign of recovery is the set target for Romania joining the Eurozone in 2019. The Commission has already been informed about this decision. The population has nothing to fear, as the costs and prices will remain the same, Minister Liviu Voinea says.

For SMEs, the switch to the euro will bring about a significant reduction in foreign exchange exposure and lower the costs of lending. National Bank of Romanian Governor Mugur Isarescu has recently said that the set target of switching to the Euro by 2019 is a feasible scenario. As regards the local business community, Isarescu supports the Government’s efforts and decision to increase predictability.