SIMILAR ARTICLES

National gross minimum wage: in Romania and EU countries

  Romania ranks second to last among EU states in terms of national gross minimum wage, according to data published by Eurostat, at a level… Mai mult

Some charts: Perfect chaos in Romanian budgets. A 4-year analysis of difference between law and implementation

Although at first glance it is difficult to draft them, Romania’s public budgets are, in fact, a series of indicators and lists of revenues and… Mai mult

Tax authority’s “armed arm” was handed over to Prognosis Commission. How strongest governmental structure looks?

ANAF’s new president, Mihaela Triculescu, handed over to the National Commission for Strategy and Prognosis – CNSP the power to decide what companies are to… Mai mult

Current account deficit – Romania goes to opposite direction compared to EU countries

Romania is clearly distinguishing itself within the EU in terms of current account deficit evolution, with the second highest current account deficit in 2017 and… Mai mult

Legislative Council had already pulled “Ordinance on greed” to pieces even before its adoption: You create bases of a centralized economy and exempt yourself from fiscal-budgetary responsibility

  The opinion issued in December by the Legislative Council on Ordinance 114 (which establishes, among other things, the “tax on greed”) contains no less… Mai mult

Cronicile
Banca Transilvania campanie aniversara 25 ani

Quality of economic growth? Let’s look at resource productivity

de Marin Pana , 17.9.2018

Romania climbed last year on the penultimate position among the EU member states in terms of the productivity of resources in the economy, after Bulgaria, according to data released by Eurostat.

The score of the duel between European laggards has changed from 0.73 euro/kg – 0.64 euro/kg in favour of our neighbours from the south of the Danube in 2016, to 0.75 euro/kg – 0.71 euro/kg for us, in 2017.

However, with only 0.75 euro/kg of raw material used in 2017, we were at a considerable distance from countries like the Netherlands (3.96 euro/kg), the UK (3.56 euro/kg), Italy (3.38 euro/kg) or Spain (3.16 euro/kg). And we remain somewhere at less than half compared to former socialist countries in Central Europe.

Beyond the structure of the economy, more or less based on services, the resource productivity indicator shows the capability to use raw materials as efficiently as possible.

That depends on the product nomenclature as well as on the technologies used, and the influences are seen in labour productivity and environmental pollution. That, with direct consequences in a faster or a slower development as well as more or less sustainable.

*

The productivity of a country’s resources is measured by dividing its GDP by domestic consumption of materials (from domestic production plus the balance between imported and exported raw materials). On the level of resource productivity, the European hierarchy looks significantly different from the standard of living situation, with the UK, Italy and Spain occupying dominant positions, at a great distance from the rest of the platoon and with the northern countries Denmark, Sweden and Finland at the bottom of the ranking.

Productivity growth rhythm in recent years and European updated ranking

The champion in terms of resource using since in 2005 was Spain, which has achieved a very strong improvement (+168%) of this economic indicator and has climbed from the mediocrity level to the top of the European list.

It was followed by Ireland (+156%), which went from a similar level to Hungary and Poland and came close to Germany, Belgium and France.

*

  • Evolution of resource productivity in EU countries between 2005 -2017 (euro/kg)
  • Country
  • The Netherlands
  • UK
  • Italy
  • Spain
  • Luxembourg
  • France
  • Belgium
  • Germany
  • Ireland
  • Malta
  • Croatia
  • Slovenia
  • Austria
  • Slovakia
  • The Czech Republic
  • Greece
  • Denmark
  • Sweden
  • Hungary
  • Portugal
  • Lithuania
  • Cyprus
  • Poland
  • Finland
  • Latvia
  • Estonia
  • Romania
  • Bulgaria

*

Resource productivity went down in Romania between 2005 and 2008, that is, just in the boom years (only the Greek economy has experienced a decline in this indicator, with the exception of the conjuncture evolution in Belgium, positioned on an entirely different level).

Later recovery has brought us improvement values similar to the group of Latvia, Lithuania, Poland and Bulgaria (Estonia has a situation similar to the unpleasant surprise of Sweden, now overcome at this chapter NOT only by several states from the former Eastern bloc but also by the neighbouring Denmark, which recovered a significant gap).

Eurostat data shows in our case a development model with highly extensive and less intensive features built with more focus on technology consumption and resource use. Hence an important cause of a still relatively low added value of production processes and a potential cause of stagnation in the future at a development level of 70% -80% of the EU average.

Interestingly, including in terms of geographic grouping, the improvement in the resource productivity indicator was roughly double in the group formed by Croatia, Slovenia, the Czech Republic, Slovakia and Hungary compared to the above-mentioned group of which we are part. Hence the major objective gap, with Romania competing with Bulgaria to cross a symbolic threshold of 1 euro/kg, reached by countries that are heading to 2 euro/kg since 2005.

This is a positioning that represents an early warning.

Beyond the economic results, which are quite good in terms of quantity, we should be more careful about the quality of growth. Here we are somewhat weaker in terms of real convergence with the EU economies and we are likely to get into a mediocrity blockage of the Portuguese type.

Mergeți în homepage ›

Publicat la data de 17.9.2018

Lăsați un comentariu


NEWS

Commissioner Corina Cretu: There is a risk that Magurele Laser will not be completed during this budget implementation

In the absence of a rapid response from the Romanian Government to the European Commission, there is a risk that Magurele Laser can no longer… Mai mult

Romania joins countries that recognize Juan Guaidó as interim president of Venezuela

The Presidential Administration announced on Friday that President Klaus Iohannis, "as the head of Romania’s foreign policy decisions and Romania's representative at the external level,… Mai mult

AmCham Romania: Counterproductive public policies have reched an alarming level

Further to the message on the impact of OUG 114/2018 transmitted on Thursday to the organizations in the Coalition for Development of Romania (CDR), AmCham… Mai mult

Finance minister stopped borrowing money from the market. Teodorovici: We have funding resources for minimum six months

Minister of Public Finance (MFP), Eugen Orlando Teodorovici, has ordered to stop borrowing operations on the market because MFF would have all the money needed… Mai mult

BNR: If we sold foreign currency to defend Romanian leu, as PSD wants, interest rates would explode and ROBOR would go over 5-7 percentage points

The National Bank of Romania wants a "loyal cooperation" with the Ministry of Public Finance, and that involves a prior consultation with the central bank… Mai mult

Tax on bank assets was not included in 2019 draft budget

The tax on bank assets was not included in the 2019 draft budget, published on Thursday evening by the Ministry of Public Finance (MFP). According… Mai mult

Eruption on foreign exchange market: Mechanism of spiralling depreciation. Euro - sudden surge to 4,759

The average euro exchange rate, calculated by the National Bank of Romania (BNR), suddenly climbed sharply to a new record level of 4.7569 RON /… Mai mult

ANAF starts controls at large taxpayers. Mission stated: Combating phenomenon of externalisation of profits

The National Agency for Fiscal Administration has publicly announced the start of the "Iceberg" operation - a large fiscal control action targeting big companies operating… Mai mult

It becomes increasingly harder for the state to borrow: Finance Ministry has attracted only a quarter of targeted 400 million

The Ministry of Finance (MFP) has only managed to sell five-year government bonds amounted to RON 110 million out of the RON 400 million issued… Mai mult

"Perfect storm" that "calls for a crisis": Bankers - about "greed ordinance"

The most important bankers in Romania say that the effects of the tax on greed will be very serious and difficult to repair over time.… Mai mult

Increasing energy price - miners' strike brings imports up to 16% of consumption

  Rovinari power plant, part of Complex Energetic Oltenia, closed one of its energy groups on Wednesday night because of the lack of coal, as… Mai mult

A flow of initiatives against compensatory appeal: 188 of detainees released committed robberies, rapes, crimes

USR will file on Monday a bill on repealing the compensation appeals law, based on which thousands of detainees were released from prison before completing… Mai mult

Mugur Isarescu: "Ordinance weird thing" reduces monetary policy efficiency, which will not help Government

The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult

World Bank lowered prospects on Romania's economic growth for 2019 and 2020

  Romania's economy will record an advance of 3.5% in 2019 and 3.1% in 2020, down one percentage point from June 2018 forecast, according to… Mai mult