Numbers Make Romania Look like EU Material

A report of the National Romanian Bank states that the Romanian economy grew more than those of the other candidate countries to European Integration.

The statistical data shown on the Euractiv web-site make Romania look so good that it might as well be a member of the EU. With a GDP growth of 4.9% in 2003, Romania is the 12th on the list of candidate countries still vying last year for EU membership.

The National Bank analysis states that 2003 was the four consecutive year in which positive inflation took place because of the appreciation of the local currency against the euro and the dollar. The fiscal framework was also very stable, so much so that the raise in taxation on tobacco, alcohol and liquid fuels had a limited effect on inflation. Another positive development was the one of the prices of imported consumer and industrial goods.

The analysis also points out some causes for the rise of prices. The average income before taxation grew with 23.6% for industries which did not restructure and are loss makers. "This kind of salaries’ raise puts an inflationary pressure on the economy, as it generates confusing signals regarding the reform process," says the analysis posted on Euractiv web-site.
As the income of the population grew, so did the credits it engaged. People started to borrow heavily to buy consumer goods, and the savings in the banks were eroded with 1.8%.