By RBJ
Romania has the most stable economy in the region and will end the year with economic growth of over 5%, according to the Minister of Finance, Adrian Câciu. The year 2023 will be a difficult one, marked further by the inflationary situation and in which the difference will be made by the maximum use of public policy instruments, directed towards investments, reforms and the support of vulnerable categories.
” We have the most stable economy in the region (in the context in which the financial markets showed a volatility that has not been recorded since the 2008 crisis) and we close the year 2022 with an economic growth that will exceed 5%, an effective response of the economy and the Government to the cost pressures manifested by inflation and interest,” the minister wrote on his Facebook page on Saturday.
He emphasized that it was possible to restore the economic potential and stabilize the economy, which produces 214 billion lei more than in 2021.
This also signaled political stability, but also the “solid” partnership between the Government and the socio-economic environment, which was the basis of most of the measures taken.
“The governmental effort achieved on the basis of this partnership exceeded 10.7% of GDP, 149 billion lei (6% direct support to the economy and citizens, respectively 83.8 billion lei in nominal values and 4.7% indirect support through tax credit, respectively 65.2 billion lei in nominal values) and was consolidated by the entrepreneurial effort manifested in the consolidation of economic activities, the increase of gross added value and employment”, Câciu also wrote.
The Minister of Finance predicts that 2023 will be a difficult year, still marked by inflationary pressure (even if inflation will enter an area of moderation and even reduction – but for this, a continuous struggle is still needed that will manifest itself throughout year 2023), complicated from an economic point of view and marked by visible slowdowns of strong economies that will also affect emerging economies, such as Romania, a year in which the difference will be made by the maximum use of public policy instruments directed at three levels : reforms, investments and support for vulnerable categories.
“The governmental effort established through fiscal-budgetary policy measures will exceed 14.7% of GDP (228 billion lei), of which the tax credit (indirect channel) represents 4.9% of GDP, and the measures for the economy and the protection of vulnerable categories amount to 9.8% of GDP. It will be one of investments, with a brave program of 7.2% of GDP (112 billion lei) and government programs intended for the economy. We must invest massively in Romanian companies so that our economy is one centered on the production of goods with high added value! It is essential to reduce the dependence on global and regional supply chains! Only if we put economic productivism in the foreground, focusing accelerated on domestic production, can we hope that the Romania of the future will no longer be based on a consumption economy”, specified Adrian Câciu.
The Ministry of Finance reports that the government debt amounted, in October 2022, to 651.508 billion lei, compared to 646.073 billion lei in September and 577.521 billion lei at the end of last year, according to data published by the Ministry of Finance. As a percentage of GDP, government debt rose to 48%, compared to 47.6% the previous month.
The level of the gross minimum basic salary per country guaranteed in payment will increase to 3,000 lei (over 600 euros) from January 1, 2023, with 200 lei deductible, according to a Government Decision adopted at the beginning of this month. At the same time, the minimum wage in the construction sector is increased from 3,000 lei to 4,000 lei.
