This subfield treats a vital part of economy: Romania’s consumption potential, compared to that of the EU, in order to identify those sets of data that could enable analyses of consumption in Romania, and equally show export opportunities. From the perspective of development, the structure of a country’s internal consumption offers information on the quality of life, degree of complexity of consumers’ behaviour and competitiveness of local producers, compared to producers in other countries, from where we are currently importing. [read more]
The consumption of households (% of GDP) has been constantly at around 60% since 2009, a decrease from 68% in 2005 and 76% in 1998. This type of consumption is fed not just by the local production, but by imports, as well. The total number of trading companies in Romania had dropped in 2015 by 18% compared to 2007, although their turnover had increased by 15.9% in 2015, compared to 2007.
Romania is the only country in the region with a negative balance of trade (although decreasing significantly). Along with Bulgaria, Romania is one of the countries that are highly dependent on consumption GDP. At the same time, Romania has the highest current account deficit in the region, despite significant decrease. Compared to 1991, Romania exports goods that require a lot of manufacturing (electric equipment or means of transport), but also goods that require less manufacturing (metals, vegetal or mineral products).
However, the structure of Romanian exports generally coincides with the structure of imports, which translates into net added value contributing to a lesser degree to Romania’s development. For instance, import coverage ratio was 98.5% in 2015, the lowest in the region (110.9% in Hungary, 106.6% in Poland, 101.7% in Bulgaria). Romania’s significant growth continues to generate a significant increase in imports, which is a sign that local producers are slow in adapting to the increase in internal demand. The effort to increase exports is most often accompanied by a similar increase in imports (technology, raw materials, etc.).
It is competence that makes the difference!
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