ROMANIAN ECONOMY IN THE EUROPEAN CONTEXT, IN 2014. RISKS AND OPPORTUNITIES

Petru Popescu and Ana Alexandrina Popescu ()
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Ana Alexandrina Popescu: Faculty of Economics, Ecological University of Bucharest
Authors registered in the RePEc Author Service: Ana-Alexandrina Popescu ()

No 9, Post-Crisis Trends - Working papers from Ecological University of Bucharest, Department of Economics

Abstract: As presented in the financial newspaper dated 10.01.2014, an overview of 2014 would have to be given not only to macro indicators: exports - which are expected to keep pace at plus 8% next year and consumption - the they expect an increase of at least 2% after stagnating last year and investment - which would be good even after subtracting stall last year, but the pace of local companies. In Romania, the aggregate profits of the companies and their turnover is very little track indicators. According to the latest data from the Trade Registry, the turnover of all enterprises in Romania in 2012 was 1.128 billion lei (254 billion euros) and net profit aggregate (sum of net profits) was 66.7 billion lei (15 billion euros). For the 2013 data should be expected to deposit balances, in May-June 2014. In 2008, the best year after the Revolution as profits and sales for most companies in Romania, the total turnover of the 442, 000 local active companies was 1.088 billion lei, and the total profit was 73.2 billion lei. In other words, companies in Romania have not achieved profit in 2008 even in nominal terms, without inflation. A problem that is talked about very little is given that exceeds aggregate net profit by 5 billion lei net loss in Romania aggregate companies. In 2012, aggregate net loss (the sum of net losses of 200, 000 companies was written off in 2012) was 45 billion lei (10 billion euros). Therefore, if we look at all 442, 000 active companies in Romania with nonzero turnover as one big company, it would have a turnover in 2012 of 254 billion euros and a net profit of 5 billion euros, a net margin of just 2%. You cannot forecast or reveal trends without entering in depth business relationships in the economy, which is captured primarily by the evolution of corporate results, even if the annual quarter, as in the United States. Unfortunately, the economic debate in Romania intersection of micro and macroeconomics is quite low. Neither the Ministry of Finance, which has all the data available and the local companies on the other hand must rely on macro forecasts to make decisions on budgets, such correlations are not a priority, even at the level of analysis.

Keywords: credit European economy in 2014; risks and opportunities; European directives and regulations; measures of economic growth (search for similar items in EconPapers)
JEL-codes: E61 G15 M21 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2014-01
New Economics Papers: this item is included in nep-mac
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Published in Economics of Sustainable Development - Post-Crisis Trends, ISBN: 978-606-652-060-7, March 2014, pages 72-81

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