23
January

Romania: Unemployment and Employment

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Employment and the unemployment rate in Romania is hard to understand if not related to the general employment structure and other labor market indicators such as the occupation and activity rate or the role of (short term) migration. Even during the hard recession of the nineties and their aftermath official unemployment rates in Romania were relatively low when compared to other Eastern European countries.
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Category : 2009 | 2010 | economy | Economy of Romania | Employment | Labor Market | News | Unemployment Rates | Blog
23
January

Romania: Inflation Rate and Consumer Prices

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The inflation rate in Romania during the 1990ies and the first years of this decade is best to be described as a devastating hyperinflation. Inflation was mainly caused by the Romanian’s incapability to collect taxes (and, hence, financing their immense current spending with Seignorage) and a protective exchange rate regime. The still high inflation rate in the first years after 2000 in Romania was mainly a fading out. However, in recent years Romania joint the regime of inflation targeting and left the days of double-digit inflation behind.
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Category : 2010 | economy | Economy of Romania | Inflation Rate | News | Blog
23
January

Average salaries in Romania belong to the lowest of Europe and even the double digit growth rates experienced during the last years of economic boom did not raise them to an European average level. And: several years of double digit would be needed to achieve a convergence with Western European average salaries. A simple example might illustrate this notion: If we take average industrial labor costs from 2002 for Germany (32 EUR) for Germany and for Romania (1.5 EUR) and make the realistic assumption that labor costs will grow each year by 3% for Germany and the unrealistic assumption that they will grow by 20% for Romania each year a catch up for Romania would have been achieved in 2022. But let’s switch to reality and have a look on real wages in Romania, the average gross salary and average income.
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Category : 2010 | Economic Forecast | Economic Outlook | Employment | Growth | Labor Market | News | Blog
23
January

The GDP of Romania

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The GDP of Romania (per Capita) is among the lowest of the EU, second only to Bulgaria. During the nineties Romania experienced two sharp recessions and recovered only after 2000. Since then, Romania recorded high GDP growth rates until 2008 showing the typical patterns of a catching up economy.

After being hit by the financial crisis in early 2009 (the crisis arrived with some delay in Romania, yet the harder) Romania’s GDP dropped back below the level of 2007 and there are no signs for a quick recovery. An estimate by the CNP expects the GDP of Romania to reach the former level of 2008 between 2011 and 2012, which is pretty much in line with current GDP forecasts from Eurostat.

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Category : Economic Forecast | Economic Outlook | economy | Economy of Romania | GDP Romania | Growth | News | Blog
18
March

Romania entering Recession due to the financial Crisis?

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Not one year ago, growth prospects for the GDP in Romania were rather optimistic, several forecast institutions predicted GDP growth to be much above the EU-Average for 2009 and even onwards. With some delay, after the breakout of the fincial crisis GDP growth estimations for Romania were gradually downsized.

Update Note: a Resume of 2009 and data for the economy of Romania in 2010 is available here.
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Category : 2009 | Crisis Romania | Economy of Romania | News | Blog
22
February

The Economy of Romania in and after 2009

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Though the future prospects for the economy of Romania looked quite fine during 2008 the question now is how will Romania proceed in 2009 and thereafter?

Update note: data for the Romanian economy 2010 is available now!
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Category : 2009 | Crisis Romania | Economy of Romania | News | Politics of Romania | Blog