Romania didn't manage to get out of the recession in the last 2009 quarter. The Romanian National Statistics Institute published on Friday, February 12, data indicating that the GDP contracted by 7.2% in 2009 and the inflation increased to 1.68% in January 2010, in contrast to 0.3%, the inflation in December 2009.
Nearly all European economies recorded modest economic growth during the last 2009 quarter, except Romania. If Romanian analysts, bankers and economists estimated an economic growth up to 0.6% for the last year's quarter, the INS puts Romania under a cold shower with a re-evaluation of all prognosis.
The reasons leading to the economic low and the rise of inflation are the increase of taxes for consumption products, the delay in reforming the budget sector with a drop of inner demand as background. The rises in taxes made prices soar 13.87%, which had a strong influence on the consumption prices index.
The lack of reform in the budget system and the absence if investments with a multi-folded effect in the economy made the sector on which the analysts placed their bets, namely the industry, to stop receiving enough money supplies to move the economy. Plus, the State postponed important payment obligations, which affected growth in various economic sectors.
Commercial bank president: everything comes at a cost. There will be other bills
"Everything comes at a cost. When you restructure by cutting vacancies, when you don't invest, the bill you'll have to pay is going to be consistent. Instead of supporting the sectors that could help, instead of de-fiscal certain fiscal niche areas, you will end up paying more that you imagine. There are probably other bills to come as well", the president of a local commercial bank told HotNews.ro.
The inner demand decrease is explained by cuts in crediting, by popul
