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Pre-crisis radiography of Romanian economy

24 noiembrie 2008

Information in English

 
Before the outbreak of the financial intentional crisis, most local companies were activating in the field of trade and most employees worked in industry, reads a survey of the National Statistics Institute (INS) referring to the situation of the Romanian economy last year.
 
According to the same source, over 42% of Romanian companies had trade as their core activity, whereas 36% of the total companies focused on services.
On the other hand, activating in industry and constructions were 12.3% and 9.4% respectively of the companies.
In total, last year there were registered 499,857 active companies. Of these, activating in the trade sector were 211,537 companies, in the services 179,932, in industry 61,463 companies and 46,925 companies in constructions.
 
Out of the 4.3 million employees, most of them (39.6%) were working in industry, 26.1% in the segment of services, 22.6% in trade and 11.7% in constructions.
The companies activating in industry had on average some 28 employees and 5 employees the companies from the trade sector.
As regards the turnover, the biggest share was held by companies whose main activity was trade (41.5%), the industrial sector ranking on the second place with a share of 34%.
 
The companies from the field of services reported 15.9% of the overall turnover for last year and the constructions companies reported only 8.6%.
Cumulated, all the fields of the Romanian economy reported a gross profit of 43.54 billion lei (some 13.04 billion euros) in 2007.
The companies in the industrial sector reported a gross profit of 18.7 billion lei (some 5.6 billion euros), the trade companies 12.1 billion lei (some 3.62 billion euros), services companies 7.63 billion lei (some 2.28 billion euros) and the constructions companies reported gross profit of 5.07 billion lei (1.51 billion euros).
 
Last year, the companies whose main activity was services, as well the companies from the industrial sector were interested to make investments – 34.8%. 32% of these companies bought assets whose utilization period exceeds one year.
In trade and the segment of services the share of investments was equal – 16.6%.
The companies dealing in the services’ sector and industry made gross investments of 51 billion lei (some 15.3 billion euros), respectively 47 billion lei (some 14 billion euros) last year.
 
In the case of constructions companies and the ones operating in trade, the volume of gross investments amounted last year to some 24 billion lei (some 7.2 billion euros), for each separate field.
This is how Romania’s economy looked like one year ago. The situation changed, however, this year, particularly over the past months. The international crisis affects Romania and one of the fields hit most is the constructions field. There are, however, according to experts, solutions for the constructions.
 
“The constructions field is of course harmed, as other economic fields, by the banks’ blocking of financing. As long as the financing is halted, we’ll encounter big difficulties: bankruptcies, projects that broke off, layoffs, and they are expected to continue next year, too. The saving of the constructions field might be European structural funds. The field of constructions might adjust most easily to infrastructure-related activities,” Adriana Iftime, general manger with Employers’ Association of Construction Companies told daily Business Standard.

 

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