The international financial crisis transforms into an economic one in Romania, one newspaper reads on Monday. Elsewhere in the news, one newspaper reveals the past of Romanian magistrates during the Communist period. Last but not least, hotels like Burj al Arab or Hilton use sheets produced in Romania.
Cotidianul reads that the international financial crisis translates, in Romania, in an economic one. The first industry to be affected by it is the automobile one but serious threats point to almost all sectors.
Unlike the financial crisis that hit Romania mildly, the economic one keeps the pace with the international environment. The Economist Intelligence Unit, part of The Economist, estimates that Romania's economic advance in 2008 will reduce significantly in the upcoming two years.
The report reads that the economic crisis will be felt as exports will decrease, a harsher monetary policy will have unfavorable effects on the local market. EIU reads that Romania is one of the most vulnerable countries in the region, and prone to influences.
Romania's Dacia automobile factory will shut production on October 30, 31 and November 13 and 14 which basically translates into a decrease by 5,200 units of a total of 310,000 units planned for the year.
Dacia's move is a trend, considering other automobile giants which shut down production for a while. The auto industry downturn is global: Chrysler announced last week its plans to diminish its employees by 25%. Renault, owner of Dacia in Romania reported that they will shut down all their factories in France for two weeks.
Both Romanian and foreign investors are reluctant to invest in business projects, considering the current global financial crisis. Many investments in Romania will most probably be postponed until the crisis effects will diminish, Romanian P
