GDP Steadily Increasing by Four Percent Year on Year
While most of the world struggles to emerge from the global recession, Romania’s economy is thriving and seeing steady sustained growth.
Romania’s ascension to the EU in 2007 showed just how far the Baltic state has come over the past few decades, after years of strife and hardship under totalitarian rule. Yet there were those who felt that the nation’s rise to global prominence would be a flash in the pan and something that would be unsustainable in the long term.
Ten years on, and the naysayers are being forced to eat their words. Romania has seen steady and consistent growth every year, while other nations throughout Europe and the world have struggled through turbulent economic times. This is not only positive for Romania, it is also great news for exporters in the UK and the rest of Europe who are shipping to Romania on a regular basis.
GDP shows consistent growth
Economists say that Romania’s Gross Domestic Product (GDP) will increase by 4.2 percent this year, and by a further 3.7 percent in 2018. The growth is driven by rising investments and strong private consumption.
This continues a pattern of consistent growth that has been observed over the past few years when, apart from a slight dip in 2015, the country has seen GDP rise by around four percent every year.
More imports and exports
The health of the Romanian economy is largely put down to consumer confidence and spending. This in turn has been good news for Romania’s trading partners, as imports have also risen steadily over recent years.
The significance of this to other European economies should not be underestimated. There are almost 5,000 UK companies that operate in Romania, and every year, more join the party, attracted not only by the Romanian market in itself, but also the fact that the nation constitutes an access point to other lucrative markets in the region. This makes it one of the most important trading posts in all of Eastern Europe.
Exports, predominantly to Germany, Italy and other EU countries, are also healthy and are predicted to be up eight percent on last year.
Overall economic growth and prosperity
The annual economic growth rate for Romania accelerated to 6.1 percent in the second quarter of this year, exceeding all expectations. As a result, finance ministry analysts upped their forecast for the nation’s overall economic growth for 2017 to 5.6 percent, increased from the previous projection of 5.2 percent.
Romania has significant development plans in place for the next few years, and anticipates that these will serve to strengthen its position as an emerging economic powerhouse within the EU. Key among these is its General Transport Master Plan.
Passed in early 2015, this is already well underway, and will see major improvements to the road, rail and airline infrastructure at a total investment cost in excess of €45 billion.