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April 15, 2021
BUSINESS

GfK: European financial crisis appears to have bottomed out

Given this expectation, Romania is still struggling to stimulate the economic growth- stagnation anticipating.

In the wake of the Europe-wide financial crisis, Romania is however also struggling to stimulate economic growth, “GfK Consumer Climate Europe and USA for the fourth quarter of 2012” survey reports. For 2012, economists are predicting overall GDP growth of 0.8 per cent. The European Commission is only forecasting around 2.2 per cent for the current year, therefore anticipating stagnation rather than growth in the economy. Unemployment is also increasing slightly. All in all, these are not the best prerequisites for Romanian consumers to expect income growth. Given that they still anticipated wages and salaries to rise slightly last summer, as well as positive development in the economy, the indicator value fell again in the fourth quarter. It is now at -7.7 points.
Also, the greatest project for his government this year is to carry out a constitutional amendment. Only then will it be possible to reform administration in Romania more easily.
At the same time, the GfK survey reveals that Europe is stuck in recession. However, experts believe that the crisis may have reached its lowest point in autumn last year. Consumers also seem to think it is now feasible that there will be an economic upswing at the end of 2013, possibly even earlier in some countries. Consumers in most European countries seem to share this expert opinion. Although there are still many uncertainties and risks, hope does seem to be gradually spreading throughout Europe that the situation will soon start to pick up again. In most countries in the survey, economic expectations largely remained stable or improved slightly in the final quarter of 2012, albeit at a low level in general. In a comparison, the most positive outlook on the economy is in Romania (-8.7 points), followed by Germany (-17.6 points) and Bulgaria (-20.8 points). The likelihood of economic recovery over the coming months is considered lowest in Spain (-52.6 points). Portuguese consumers are also quite negative in their economic assessment (-50.7 points), as are Greeks (-50.0 points). The indicator values did, however, improve slightly in both countries.
Christmas 2012 was quite possibly the last for many Greek companies. As a result of the terrible economic and labor market situation, as well as severe austerity measures, Greeks quite simply do not have any money left to go shopping.

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