The signal forecast that the National Institute of Statistics announced indicates a record growth rate of 8.8% in the third quarter of 2017 on the… Mai mult›
Before deciding to protect the stability of interest rates more than the stability of the exchange rate and to signal, though, a future increase in… Mai mult›
The distrust regarding the health of Romania’s economic growth makes foreign analysts remember that the last time when Romania outpaced China in terms of the… Mai mult›
An abnormality that has reached its potential: Depopulation does not help too much GDP/capita growth
The data published by Eurostat on the evolution of GDP per capita over the period 2005-2015 show that the growth rate of this key indicator… Mai mult›
Document / Where is money that Government is trying to squeeze out of private sector: 36% of debts are in state-owned companies. And PSD
A total of 10 state-owned companies or owned by the public administration account for over 36% of the total outstanding social contributions at September 30,… Mai mult›
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).
Lăsați un comentariu
Rompetrol saga, chapter about money: Government asks KazMunaiGaz to pay the historical debt and demand settlement of case in court
The extension of the memorandum between the Romanian state and KazMunaiGaz, the owner of the Rompetrol Group, will be discussed only after the company's historical… Mai mult›
"Not only we have not died, we rank third in the world" - Government approved second budget amendment, deficit of 2.96% of GDP
The second budget amendment this year has been adopted at the government meeting on Wednesday. As the Finance Minister assures, this amendment is "positive", the… Mai mult›
Mayors accepted on Tuesday in the negotiations with Prime Minister Mihai Tudose and several cabinet members, the promises made by the government officials to partially… Mai mult›
The establishment of own companies by local administration to manage the services at the local level is worrying for the competition authority, Bogdan Chiritoiu, President… Mai mult›
The ruling coalition registered with the Chamber of Deputies on Tuesday the draft amendments to the three important laws for the judicial system: Law 303/2004… Mai mult›
Negative opinion and analysis of Fiscal Council on tax changes. "Tax package" costs 5.2 billion, not planned at all
The Fiscal Council issued a negative opinion on the proposal to amend the Fiscal Code, according to the opinion published Friday on the institution’s website.… Mai mult›
The Economic and Social Council, a consultative body of the Parliament and the Romanian Government, issued a negative opinion on Tudose cabinet's draft amendment to… Mai mult›
Romania ranks 45th in the Doing Business 2018 ranking by the World Bank (WB), with a total score of 72.87 points, right under the Republic… Mai mult›
Regarding the EUROSTAT release on Romania’s budget deficit in the second quarter of 2017, the Ministry of Public Finance (MFP) has issued a press release… Mai mult›
Trade Winds: US broadens economic cooperation base with Romania: most US companies coming to Bucharest are SMEs
SMEs are the most numerous among the over 100 American companies participating in the Trade Winds mission launched in Bucharest by the US Department of… Mai mult›
Government introduces a tax on jobs: 2% on salary fund for employers. Finance Minister says EU forces us to do so
Finance Minister Ionut Misa announced on Wednesday evening in an interview for Antena3 that the Government will introduce a "solidarity tax" applied to employers, depending… Mai mult›
Shareholders of Transgaz national gas carrier will provide information on the conclusion of an EUR 50 million loan agreement with the European Investment Bank… Mai mult›
European Commission’s announcement to Government and Parliament: Gas transactions market cannot be monopolized by OPCOM
Romania risks the infringement procedure if the Parliament adopts definitive amendments to the Emergency Ordinance 64/2017 on the natural gas market, which provides for the… Mai mult›
The Ministry of Finance (MFP) placed euro bonds worth EUR 1 billion on the foreign market by reopening the issue with the maturity of 10… Mai mult›
Ford launches production of EcoSport in Craiova. Total investment in Romania reaches over EUR 1.2 billion
Ford officially launched the production of the EcoSport SUV at the plant in Craiova, raising total investments in Romania to about EUR 1.2 billion, since… Mai mult›