| ECONOMIC FORECASTS IN TIMES OF CRISIS 18/05/09 |
| (2009-05-18) |
| Last updated: 2009-05-19 17:36 EET |
According to figures made public by the National Statistics Institute, the GDP fell by 2.6 per cent in the first three months of 2009, as against the last quarter of 2008, when another 3.4 per cent contraction had been announced, as compared to the previous quarter. And to complete the image, the European Statistics Bureau announced that, in April, Romania reported the highest inflation rate in the European Union, namely 6.5 per cent. But what do officials in Bucharest have to say about this? Out of optimism, or simply because they are campaigning for the June elections to the European Parliament or even for the presidential election due this autumn, they claim the response of the Romanian economy exceeds their expectations. According to President Traian Basescu, although statistics confirm the economic crisis, positive signals have already started to appear:
“According to current assessments, for which I take no credit, but which I am only communicating to you, apparently we are beginning to bounce back. But this is not to say that Romania is anywhere near the end of this crisis. It only means that there were some positive signals in April, both in terms of revenues to the public budget, and in terms of economic growth figures. What I can tell you however is that I expected a much more severe fall in the first quarter, so we have some reasons to be optimistic.”
For Senate Speaker Mircea Geoana, the situation requires enhanced efforts and attention if Romania is to make good use of the money recently granted to the country through an IMF loan:
“The truth is the Statistics Institute is right. Technically, we are in recession. Is that bad news? Yes. And since we have this foreign loan and have sorted out some of the problem of excessive public spending, it is high time that we see how we can channel this money into investments, development and social protection.”
Sounding like a prime minister who has things under control, Emil Boc comes up with solutions:
“We know that, at present, the crisis can only be overcome if three essential conditions are met: investments, jobs and loans. These are the core directions of the government's activity in the months to come. 20 per cent of the budget funds are earmarked for supporting investments in infrastructure, transport, environment, agriculture, education and healthcare.”
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2025-04-03
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