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In Q1, the domestic economic growth in Romanwas four times higher than the EU averag

Discussion in 'Buying Overseas Property' started by David howe, Aug 5, 2008.

  1. David howe

    David howe New Member

    Despite the turbulence on international markets, in Q1, Romania’s economic growth was four times higher than the EU average, according to the Southeast European Times portal, quoted by Agerpres. The Romanian economy grew by 8.2 per cent in Q1 2008, being the highest jump in the first quarter ever since 1990, according to the National Statistical Institute. The GDP in Q1 was EUR 23.5 bln. By comparison, the average economic growth in the EU was by 2.4 per cent in the same period, according to Eurostat.

    The National Prognosis Commission (CNP) forecast that economic growth in Romania would exceed the five per cent annual threshold by 2020, and that the GDP will be EUR 442.3 bln. However, CNP expects the growth of the economy to drop to 6.5 per cent at the end of 2008 and to exceed 6 per cent only in 2009.

    Economic growth in Romania may exceed six per cent in 2008 if the agricultural production was good, said central Bank (BNR) Governor Mugur Isarescu. He explained that agricultural production might be EUR 1 bln or one of cent of the GDP. Economy Minister Varujan Vosganian was also optimistic, saying that the growth might continue in Q2 and reach 8 per cent.

    AOAR: Economic growth is not a threat

    The President of the Businessmen’s Association (AOAR), Florin Pogonaru, and the CEO of Aviva Pensii Private, Eugen Voicu, told The Money Channel that Romania was on the right way from that point of view. ‘I believe we are on the right way and a steady way, too. I am not that scared by macroeconomic figures. Of course, such an inflation arte is not desirable and I can see that we are falling behind our commitments. But let us not forget that this is a time of economic growth on a medium term, I would say, because investment in Romania will continue,’ Aviva Pensii Private CEO Eugen Voicu stated. ‘I also think Romania is on a curve of potential growth with this seven per cent and, again, we should stop judging the economy as such, let’s judge the economy within the on-going convergence process,’ said AOAR President Florin Pogonaru.

    Biggest retail growth

    In June, Romania also registered the highest retail growth in the European Union both compared to May (4.1 per cent) and compared to the similar period in 2007 (23.3 per cent), a lot higher than the EU average. The 23.3 per cent rise registered by the Romanian retail is 21 times higher than the EU 27 average of 1.1 per cent, and the monthly rise is 4.1 times higher than the one per cent growth arte registered in the EU 27, with the main threats for the Romanian economy remaining inflation and deepening current account deficit. The annual rise of retail in Romania in June was over four times bigger than the 5.7 per cent growth rate reported by the second-ranked country – Slovenia. Updated every month, the 4.1 per cent growth rate is 2.4 times higher than the 1.7 per cent growth rate reported in Sweden.

    The most important retail drops in June compared to June 2007 were registered in Latvia (- 8.3 per cent), Spain (- 7.7 per cent) and Estonia (- 7.2 per cent).

    The Statistical Office of the European Commission notes there was no data available for Italy and Malta, and that data supplied by The Czech Republic, Ireland, The Hellenic Republic, Cyprus, Hungary and The Netherlands are confidential and cannot be published individually.
    David Howe LLB. LLM

    INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania
     
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