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GfK: Growth of between 2.7 percent and 4.3 percent over 2014-2016 for the Romanian economyGrowt
Between 2014 and 2016, the Romanian economy is expected to see growth of between 2.7 percent and 4.3 percent, the Findings of the GfK Consumer Climate Europe study for the third quarter of 2013 reads.
For 2013, experts are anticipating a slight revival in the Romanian economy, with forecasts for this improvement varying from 1.6 percent to 2.0 percent, the study says.
According to estimates, GDP rose by 0.5 percent in the second quarter. The overall economic framework conditions are favorable: national debt is at around 34 percent, the budget deficit is around 2.5 percent and unemployment is in the region of 7 percent.
However, says the research, Romania still needs a number of reforms in order to be able to keep pace with other European countries on a lasting basis. Many companies are still owned by the state. Hopes for further privatization were dashed again and again in the chemical, mining and transport industries, in particular. There are also still problems with regard to the judicial system and the black market. Invitations to bid very often feature irregularities and the Romanian government must improve its very poor payment behavior in some areas.
Private consumption is playing an increasingly important role in Romania, further reads the survey. Real income is rising. In central Romania, for example, some areas have virtually zero unemployment. The additional weak area of professional training was recently reformed. Since 1989, the country had barely invested in this area, but now there is a new legislation, on the basis of which professional qualifications can be completely rebuilt. This relates to practical qualifications, which aim to meet the demand of local labor markets by working in close collaboration with business and state institutions. The aim is to guarantee the availability of qualified professionals and at the same time offer young people good career prospects. This is a key step, particularly in view of high youth unemployment, the GfK research concludes.