The effects of the global economic crunch will only be felt by mid 2009 in Romania, one newspaper reads on Monday, quoting Finance ministry experts. Elsewhere in the news, Romanians abroad would rather live on unemployment rates abroad than return home.
Finance ministry experts declare that the effects of the economic crunch will only be felt in Romania by mid 2009, Cotidianul informs. However, its effects will not be as harsh as those witnessed by other European countries.
Romania's economy, according to quoted experts, reacts with a 6 to 7 months delay to what is happening within the European Union. Thus, they declared that currently, Romania is doing just well due to the contracts signed before the crisis broke out.
Nonetheless, for Romania, the crisis will not be that harsh, since its extra-communitarian commercial relations increased by 27% in the last year, and they will act as a protective cushion. Moreover, Romania's weird consumption structure, which amounts to some 65% for food and other goods, will be another antidote to easily escape the crisis, National Prognosis Committee president Ion Ghizdeanu declared.
Romania's relations with the European Union are very tight, since some 70% of the country's trade balance is taken up by it which might be the ticket to an important crisis effect. Ministry experts declared that after 8 or 9 years of constant economic growth Romania will face an important challenge and the fiscal economy will play an important role.
Ghizdeanu showed that the first effects of the crisis were visible in Romania as well, especially in the production sector. He pointed out that in the last couple of months, local automobile productions had serious problems and so did those in the wood and electronic appliances industries.
However, foreign direct investments will continu
