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PM Grindeanu: the industrial sector contributed most to the economic growth of Q1
Premier Sorin Grindeanu said on Friday at the beginning of the meeting of the government that Eurostat confirmed that Romania recorded in Q1 of this year the highest economic growth of the EU with 5.7% saying that he hoped that now things are as clear as possible for those who contest the data.
The head of the government wanted to underline the fact that the industrial sector contributed most to this economic growth.
‘The biggest contribution to this economic growth on Q1, according to the same data was given by the industry, with 1.5 percentage points, and not by consumption,which had a contribution of only 1.4 of the economic growth. I hope that now things are clear especially for those who contested these data’ Grindeanu said.
Romania recorded during the Q1 the biggest economic growth of the EU, both against the previous quarter and against the same period of the previous year, according to the data published on Thursday by the European Office for Statistics, Eurostat.
Both the economy of Romania advanced in the first three months of this year by 1.7% against the previous quarter and by 5.6% as reported to the similar period of 2016. The Eurostat data, which are in agreement with the European system for statistics ESA 2010, confirm the estimates published by Eurostat on 16 May.
INS confirmed on Wednesday the estimates published at half May, regarding the growth of GDP in Q1 this year as 5.7% and gross 1.7%.
But the economic analysts consulted by Mediafax show that Romania recorded the highest growth of GDP in the EU in Q1 2017 on the basis of the consumption stimulation, which led to a growth of imports. „Namely we consume what the others produce”, thay said.
‘I think it is good that we have an increase of the income, but it is dangerous to be enthusiast about their growth and consider that they are guaranteed and they will go on forever. It is a risky movement to increase salaries first and then to wait to have an increase of production. Anytime the trend may reverse and see that we can’t pay those salaries. In 2008 there was an increase of the salaries, 50% for education as the parliament decided,then they had no money to pay them. Milliards of euro which are due to the teachers and which affect the state budget for years. The payment was scheduled and it affects the budget even today’ the economic analist Aurelian Dochia says.
Cristian Parvan, the general secretary of the Association of Business People in Romania (AOAR) also says that stimulation of consumption determined the growth of imports, the imbalance of the commercial balance and at present we consume what others produce.
‘According to the latest data of INS, the engine of the economic growth was consumption together with the industry. In fact, it is about the auto industry and auto parts. We don’t produce aircraft or rackets and export them. We produce wiring, textiles, steering wheels, airbags. It is clear that we consume what others produce. If you did everything no to produce something, this is the result the moment when you consider that imports are mor profitable than domestic production, this is the result. Including food. This is the result of a policy’ Cristian Parvan said.
He says that there should be policies for the support of the innovative products, which would stimulate exports. ‘What is serious is that not even the few Romanian innovative products cannot find their place on the domestic market,everybody preferring imports. That is why we need a firm policy and introduce innovative products to export them. That is why, we need to have a chain of values, so that the Romanians become sub-suppliers for more complex products’.