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Economic Indicators
- Luni, 30 August 2010 03:00
- Accesări: 548
According to the same data, between January and July 2010, revenues went up by 1.2%, especially due to the collection of VAT and excises, while general expenditure increased by 3.2%. Personnel expenses went down by 4.7% and, goods and services expenditure also diminished by 2.2% as compared to the same period last year. The most significant drop was registered in the state budget, 24.8%, while local budget expenditure grew by 7.8%.
In another move, the National Statistics Institute has recently announced that in the second quarter of the year, Romania’s GDP registered a slight increase of 0.3%, as compared to the first quarter, but it’s still dropping if we compare it with the corresponding period of last year, therefore the economy as a whole actually contracted by 1.5% in the first six months of 2010.
PM Emil Boc has commented the recent statistics, according to which Romania is about to overcome recession. He has stated that although this growth is timid, it is the first after several quarters of recession. Boc believes that the situation would have been better if flooding had not hit and the Constitutional Court had not overturned the Government’s decision to cut pensions by 15%. As a result, the executive decided to increase the VAT from 19 to 24%. Emil Boc:
Transport projects in Romania
- Sâmbătă, 06 Noiembrie 2010 02:00
- Accesări: 1734
Coming back at the helm of the Transport Ministry has expressed intention to promote a new policy, meant to attract larger investments in infrastructure and to absorb more European funds for transport projects in Romania.
Going ahead with the upgrading of the road infrastructure in Romania continues to be a priority, the minister has said and added that projects worth over 5.5 billion Euros will be launched by the end of next year.
These sums include the funds already allotted for the bids organized this year. Anca Boagiu has said several sectors of highways, measuring 243 Kms, are under construction. The total value of the project is 2.5 billion Euros and should be completed by 2011 –2012.
By the end of next year, bids should be organized for the construction of some other 290 km of highway, worth 2.5 billion Euros. Other projects are related to the construction of 11 ring roads. All these ring roads have a total length of 138 km and a total value of 540 million Euros.
The Transport Ministry also intends to modernize 950 km of national roads, an investment worth 848 million Euros, that is obtained by a credit from the European Investment Bank.
As regards railway infrastructure, special heed will be paid to the upgrading of the Pan-European Corridor IV.
Bids for three segments will be organized in the west of the country. They have a total length of 166 km and are worth 1.8 billion Euros.
As regards naval transport, the ministry envisages important projects, with a total value of 200 million Euros, which include the building of a road bridge over the Danube-Black Sea canal, including the necessary infrastructure works to offer access to the Constanta port. The deadline of the project is 2012-2013. Last but not least, on December the 20th, the ministry will launch a project meant to rehabilitate bridges over the Danube.
The National Bank of Romania and its economic forecast
- Joi, 10 Martie 2011 02:00
- Accesări: 2906
Romania has entered a new period of economic growth, but it needs to take things slowly so as not to go through another traumatising experience. This statement was made by the governor of the National Bank of Romania, Mugur Isarescu, in a meeting with Arab investors attending a forum of cooperation between Persian Gulf states and Romania, hosted by Bucharest.
According to Isarescu, Romania’s economy has made the necessary adjustments with regard to its deficits and is now prepared for a new cycle of sustainable growth. The National Bank’s estimates for this year point to a 1.5% economic growth, but the figure could be higher if significant investment were made in infrastructure and agriculture. These are precisely the areas in which the governor of the National Bank believes the Persian Gulf investors could become involved. Mugur Isarescu: “I believe infrastructure, in general, not only road, but also maritime infrastructure such as the port of Constanta and Galati, offers significant investment opportunities. Constanta is an extremely efficient gate to Europe. The Danube is also a navigation route that takes us to the heart of Europe. Agriculture is another good area for investment. By agriculture I am referring not only to the forecasts regarding the deterioration of the global food situation, but also to Romania’s untapped potential, including land, tradition, labour, and European funds.”
In other words, Romania is a country with a stable economy providing many investment opportunities. What else does it need? Governor Isarescu again: “I don’t necessarily think it needs money, but entrepreneurs, viable projects and people capable of carrying these projects through. We are a country with many unfinished projects. 40,000 budget investment projects are unfinished. For me, as an economist, this almost says it all. It explains the economic growth and the high inflation rate, and why you can’t feel the difference despite the 5% of GDP allocated to investment.”
Mugur Isarescu told investors that the Central Bank in Bucharest will try to keep the inflation rate in check, and that it hopes to reduce it to less than 4% by the end of the year, through this is dependent upon international food and oil prices.
