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| MEDIA HEADLINES (5.07.07) |
| (2007-07-05) |
| Last updated: 2007-07-06 11:57 EET |
The damage caused in Romania by drought may amount to 1% of the GDP, writes the daily Evenimentul Zilei, which estimates an economic growth of 6.5%, lower than last year’s 7.7%. The president of the National Prognosis Commission Ion Ghizdeanu is quoted by the daily Ziarul Financiar as saying that this loss can be compensated by the boom seen by the building sector and the industrial growth which has exceeded all expectations. In Ghizdeanu’s opinion, in the first 5 months of the year, the growth in the building sector stood at almost 32% as compared to the estimated 17%. The same goes for the industrial production, which has exceeded initial estimates. According to the latest data, industrial growth stood at 6.3% in the first 4 months of the year as compared to the initial 5.8% estimated for this year.
The daily Jurnalul National, which covers the same story, tries to alleviate some of the Romanians’ worries and writes that although the heat wave and the lack of rainfall is likely to create a lot of problems in agriculture, this sector only accounts for 8% of the GDP. So far, drought has affected 1.7 million hectares of farm land out of a total of the 2.8 million ha sown last autumn. Wheat, rye and barley crops have been damaged to a worrying extent.
The daily Bursa writes that besides its negative impact on agricultural production, drought has also advanced fruit and vegetable ripening and harvesting, not to mention that the quality of these products has been affected by the lack of water. At the moment, potato crops are most affected by excessive heat. As a farmer from southern Romania quoted by the daily Bursa put it, potatoes look like they’ve just been taken out of the oven.
Although they love heat, pumpkins and water melons need more water as well. Farmers have been unable to irrigate their land because they didn’t have the money and the increase in the irrigation subsidy came too late. According to the interviewed farmer, it’s like giving subsidized medicine to a dead man. Fruit trees are usually not very affected by heat, but this year the fruit ripened too early and are of poorer quality. As a result, fruit and vegetable prices are expected to increase in the coming period, because farmers will produce less and will want to cover their expenses.
The daily Ziarul Financiar gives us some good news, though. Apparently, the vine growing sector will benefit from 50 million euros a year from the European Union to rehabilitate vine growing areas as part of a reform programme in the wine making industry.
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