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Statistics and Economics 10/11/2010
(2010-11-10)
Last updated: 2010-11-11 14:32 EET
The good news from the National Statistics Institute is that in the first nine months of the year, Romania’s budget deficit dropped by 3.5% as compared to the similar period last year. That was mainly caused by an accelerated pace of exports. The bad news is that we have a long list of drawbacks, ranging from a sharp drop of 16% in the volume of construction works for the same period to a staggering demographic slump.


At present Romania’s population stands at less than 21.5 million people and this downward tendency is going to continue. The situation is worrying from a demographic point of view if we look 20 years back when Romania boasted a population of more than 23 million people.


Statistics show that the number of foreign visitors to Romania registered at border checkpoints in the first nine months of the year was around 5.8 million, which points to a slight increase of 0.1% as compared to the same period of 2009. 60% of these foreign visitors came from Hungary, Bulgaria, Germany, Italy and Poland while the number of Romanians who went abroad in the same period of time went down by 8%.


Statistics released by the aforementioned institute in October show a 0.6% price hike as compared to the previous month. This has a strong impact on inflation, whose annual rate has reached 7.9%. The National Bank of Romania has revised the inflation rate forecast for this year from 7.8% to 8.2%. Keeping inflation in check is one of Bucharest’s top priorities and one of the conditions set in the 20 billion euro bailout package coordinated by the IMF.


Service prices in Romania went up by 0.7% in October as compared to the previous month, while non-food goods saw a slighter increase of 0.3%. Forecasts for the following period are equally pessimistic. According to the National Statistics Committee, Romania will reach an unemployment rate of 8% in 2010, as compared to 7.8% last year. This means this year we’ll have 720,000 unemployed people in Romania, though experts believe this number could be higher. But it will not be easy for people who will be able to keep their jobs, either.


The authorities in Bucharest have taken some tough austerity measures in a bid to pull Romania out of the recession it has been battling with for the last two years. One of these measures provides for a 25% cut in state-employees’ salaries by the end of this year. Talks are underway now for a 15% cut instead of 25%, though state employees are by no means to go back to the same wages they had in the first half of 2010.
 
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