SIMILAR ARTICLES

Brief picture of economy. 2018 GDP growth after first nine months: 4.2%

The economic growth on the first three quarters of 2018 was 4.2%, both in gross series and the seasonally adjusted series, according to data published… Mai mult

Budget revenue, historical minimum – below two-thirds of EU average as a share of GDP. Declining trend and low values ​​across the board

Romania ranked penultimate among EU member states in 2017 in terms of budget revenues share of GDP, according to Eurostat data. With only 25.8%, our… Mai mult

Labour cost, nearly 14% higher than last year. Implications

Hourly labour costs grew by 13.91% in the third quarter of 2018 compared to the same period in 2017 (+1.53% compared to Q2 2018), according… Mai mult

“Man, there is still time”/ We meet 13 out of 14 criteria on European dashboard: but how do we overcome two neuralgic points?

According to Eurostat, Romania observed 13 of the 14 indicators set for the scoreboard of the macroeconomic situation in the EU member states last year.… Mai mult

Romanian research has come below the level registered at the EU accession moment. And it reached one sixth of EU 2020 target

Romania insists on staying on the penultimate position among the European Union member states in terms of R & D expenditure in 2017, according to… Mai mult

Cronicile

A paradox meant to give us food for thought: rapid economic growth without fast growing enterprises

de Marin Pana , 30.10.2017

Although we have been positioned at the forefront of the EU due to our economic growth over the past two years in terms of GDP growth, this notable performance has been achieved while we have a very low proportion of rapidly growing enterprises, as they are defined by Eurostat in comparable terms at the EU level.

The chart published by the EU’s statistical body looks stupefying to anyone who makes the connection with the Romania’s economic performance, although the data processed are those of 2015 according to the standardized procedures and the time needed to harmonize the results.

Why Romania is not between Hungary and Bulgaria

While approximately one in five employees worked in enterprises with a fast growth rate two years ago in Ireland (21.7%), Hungary (20.7%) and Portugal (19.7%), Romania appeared on the penultimate position with only 5.9% leaving behind only the small Cypriot economy (which had, for comparison, 3.6% calculated for 2014).

It is noteworthy that two other countries from the former socialist bloc have been positioned much ahead of us, which shows that the impact of companies with high growth dynamics also led to an impact commensurate with (that is MINOR IN OUR CASE) the increase in the number of employees. Bulgaria (18.6%) was placed right after the UK (19.0%) and Latvia equalled the Netherlands at this indicator (both with 17.4%).

At the European level, about 158,000 enterprises have been ranked as fast-growing. They accounted for almost one-tenth (9.9%) of all active businesses with at least 10 employees and offered jobs to 13.5 million people. They were identified based on an increase in the number of employees of more than 10% over three consecutive years.

The most active economic sectors were “IT&C” (15.3% of all fast-growing enterprises), “administrative and support services” (14.0%) and “professional, scientific and technical activities” (11.3%).

One way or another, we lagged behind once again in EU statistics

In our case, the first of the three best performing sectors mentioned above showed an increase of 9.5% in 2015 compared to the previous year, and the latter two, taken together in the national GDP statistics, settled for only 2.4%.

The provisional data for the first semester of the current year show the “IT&C” maintains at a high rate (+ 10.5%) and a remarkable development in the mix between “administrative and support services” and “professional, scientific and technical activities” (11.4%). That should be seen only in the data to be published by Eurostat in 2019, BUT ONLY IF that is confirmed in the final version.

For the time being, though, the distribution of fast-growing enterprises by member states is totally unfavourable to us and the highest shares in the total number of enterprises registered are in Ireland (14.9%), Malta (13.7%, with data from 2014) and Hungary (12.5%). Behind them, Slovakia and Latvia (both with 12.2%) managed to overtake Sweden (12.1%).

It is worth studying the stupefying graph below, with Romania next to the countries from where we import:

In this context, where does Romania appear? Well, penultimate, with only 2.3%, just slightly before Cyprus (2.2%, value of 2014) and far away from the platoon of European LAGGARDS Greece (6.0%), Austria (6.5%) and Italy (7.6%), above which is positioned the first country that joined the EU more recently, Estonia (7.7%).

Although the relationship between the number of performant enterprises and the increase in the number of newly created jobs show a relatively good capacity to create well-being based on a person’s work, it should be underlined that successes are rather isolated in the large mass of companies.

Where those struggling to survive form the clear majority, while those that are successful indeed are far from being enough. This is shown by the data from other neighbouring countries which are similar in terms of development level and which are facing or should face the same problems. The difference seems to be made by the environment where they operate, with the support of the state (in their case) or the dominating situation of throwing a spanner in the works (in our case).

Mergeți în homepage ›

Publicat la data de 30.10.2017

Lăsați un comentariu


NEWS

State is borrowing at increasingly higher costs - government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Iasi - Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult

Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult

FIC: Amendments on Criminal Codes expose business environment to abuses from civil servants

Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult

European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP

Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult

Ford is looking for 1,700 employees to produce EcoSport SUV model

The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult

New 100% Romanian tractor has been launched. Features, endowments, price

IRUM Reghin launched the first 100% Romanian tractor, announced Digi24, designed and built by the company’s engineers, 15 years after the Romanian tractor manufacturing disappeared.… Mai mult

Romanians from abroad sent as much money to Romania as Government attracted from European funds and subsidies

Romanians working abroad sent EUR 2.695 billion to the country in the first eight months of 2018, equalling the European funds and subsidies received in… Mai mult