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Service economy, to become foremost once economic crisis is overcome

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The service economy will become foremost once the economic crisis is overcome, and the services will be very much connected with the production activities, National Bank of Romania (BNR) Governor Adviser Adrian Vasilescu told a specialist conference on Tuesday.

'This lifestyle combined with the production style shows us that, once the economic crisis ceases, we shall move to another type of economy, therefore from the physical goods economy, as a foremost economy, to the intangible services economy, as a foremost economy, thus reaching a combination between the physical goods economy and the service economy, as a consequence of the change in lifestyle,' the Central Bank Governor Adviser showed.

According to the cited source, a production unit in agriculture will benefit from 20 percent of the revenue earned, the rest of 80 percent going to services.

'Because we are a country counting very much on agriculture, we begin to understand that we shall only have a performing agriculture if it is connected to an active and powerful service system. Otherwise, we remain where we are,' Vasilescu said.

On Sunday, the BNR Governor Adviser was explaining on the public radio station that the Romanian agriculture was lacking in services, setting as examples a number of price increases for the basic products, although Romania owns the largest area of agricultural land in Europe.

According to the National Institute of Statistics (INS), released on February 11 this year, the electricity price in January went up 10.38 percent, compared with December 2012, and the potato prices grew 8.84 percent, those of other vegetables and canned vegetables enhanced 8.34 percent, the fresh fruit prices advanced 4.61 percent and the tobacco and cigarette prices grew 3.56 percent.

In the first month of 2013, compared with December 2012, the food product prices increased 1.24 percent on average. More significant price increases were registered in beans and other legumes, plus 3.12 percent, while price declines were only registered in sugar, minus 0.11 percent.

The annual inflation rate in January 2013 stood at 5.97 percent and the monthly average rate was 1.3 percent.



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