Despite being the poorest country per capita GDP amongst Slovakia and Czechoslovakia (approximately half the GDP of its European neighbors), Romania has experienced nearly 3% growth from 2012 to 2013, exceeding the country's own government expectations of less than 2% growth. It is widely believed that the Romanian economy could continue to accelerate in conjunction with crucial capitol market developments this year.
Romania's growth is tied to exports as the country seeks opportunities in exports and automotive sectors, in addition to European Union structural funds which sustain economic growth. The country's consecutive years of economic growth has lead it to be classified as a frontier market, which has been proven very beneficial by the fact that investors are giving markets more attention. Although several IPO opportunities for the country are still expected to be announced along with the increasing participation of retail investors, banks in and around Romania remain cautious with lending as interest rates for loans remain steep.
Website: http://www.businessinsider.com/romania-on-the-right-track-2014-2
I think that stories like this about smaller countries like Romania and Latvia are very indicative of the health of the world economy. Smaller growth is even better than bigger growth because the mark of a healthy economy is solid and consistent growth and if Romania was having a huge spurt, that could be a sign of a major crash to come in the future.
ReplyDeleteI think that even a small percentage of growth is a pretty big deal in terms of drawing in new investors and diversifying sectors. I wonder how this will effect tourism if new retail investors come into the country I predict that more people will travel to the country a double win for the country increasing economic growth and the tourism sector.
ReplyDeleteI think that even a small percentage of growth is a pretty big deal in terms of drawing in new investors and diversifying sectors. I wonder how this will effect tourism if new retail investors come into the country I predict that more people will travel to the country a double win for the country increasing economic growth and the tourism sector.
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