Romania, the biggest increase in GDP in Q3 2023/Q3 2022. Romania’s GDP slowed down due to the negative state of industry, a sector excessively dependent on the German economy in recession

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Bucharest, December 7, 2023 # rbj – In the third quarter of 2023, seasonally adjusted GDP decreased by 0.1% in the euro area and remained stable in the EU, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2023, GDP had increased by 0.1% in both the euro area and the EU.

During the third quarter of 2023, GDP in the United States increased by 1.3% compared to the previous quarter (after +0.5% in the second quarter of 2023). Compared with the same quarter of the previous year, GDP increased by 3.0% (after +2.4% in the previous quarter).

Malta (+2.4%) recorded the highest increase of GDP compared to the previous quarter, followed by Poland (+1.5%) and Cyprus (+1.1%). The highest decreases were observed in Ireland (-1.9%), Estonia (-1.3%) and Finland (-0.9%).

As usual, Eurostat is stingy in informing the public completely and correctly. We refer to the fact that it was Eurostat’s duty to notice that the EU economy is in full recession, while the US economy maintains its constant upward trend.
At the same time, we want to emphasize that it was appropriate for the EU Statistical Office to emphasize that as of Q3 2022, the most dynamic economy of the EU is that of Romania.
With a GDP increase of 2.9% in Q3 2023/Q3 2022, Romania breaks all the records of other economies. Apart from that of Croatia, this is a small economy.

Corroborated with the explanations provided today by the National Institute of Statistics of Romania, it is interesting to see what are the pillars of Romania’s GDP growth. These are agriculture, investments, retail and wholesale trade, IT services, etc. Not the industry, which dragged down Romania’s economic growth. The main explanation? Today’s industry in Romania depends to an extent of 80% on the state of the industry in Germany. Romania has become a kind of annex of the German industry, especially in the automotive industry. And as Germany is at a standstill with the car industry, Romania suffers twice as much. Because it is an essential supplier of components and auto parts for the German industry.
The solution? Moving away from the absolute dependence of the Romanian industry on that of Germany. And, of course, the development of a clear and medium-term strategy for the reindustrialization of Romania. It is normal for the Romanian industry to produce parts for German cars that are assembled in China or Hungary or Poland.

Just as it is not normal for Romania to annually buy military equipment worth billions and billions of dollars and not have any offset contract with the American industry.

Regarding the state of the Romanian economy, the Romanian Institute of Statistics shows that the following branches had more important positive contributions to GDP growth in the period 1.I-30.IX 2023 compared to the period 1.I-30.IX 2022:

– agriculture, forestry and fishing (+0.3%), with a weight of 5.9% in GDP formation and whose activity volume increased by 5%.

– constructions (+0.3%), with a weight of 4.4% in GDP formation and whose volume of activity increased by 7.4%;

– information and communications (+0.3%), with a weight of 7.2% in GDP formation and whose volume of activity increased by 4.6%;

– wholesale and retail trade; motor vehicle and motorcycle repair; transport and storage; hotels and restaurants (+0.2%), with a share of 18.6% in GDP formation and whose volume of activity increased by 1.2%;

– real estate transactions (+0.2%) with a weight of 7.2% in GDP formation and whose volume of activity increased by 2%;

– professional, scientific and technical activities; administrative services activities and support services activities (+0.2%) with a weight of 7.6% in GDP formation and whose volume of activity increased by 3.4%;

– performance, cultural and recreational activities; repairs of household products and other services (+0.2%) with a weight of 2.9% in GDP formation and whose volume of activity increased by 5.5%;

– public administration and defense; social insurance from the public system; education; health and social assistance (+0.1%) with a weight of 13.2% in GDP formation and whose volume of activity increased by 1%.

A positive contribution to GDP growth was made by net taxes on the product (+0.2%), registering an increase in their volume by 2.2%.

Industry had a negative contribution (-0.6%), with a weight of 21.0% in GDP formation and whose activity volume decreased by 2.7%.

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