Despite the global financial crisis, most emerging markets have continued to make progress since 2007 in their bid to escape the ‘middle income trap’, according to PwC’s new ESCAPE index, a press release informs. The “middle income trap” occurs when a country’s growth plateaus and eventually stagnates after reaching middle income levels. Romania has shown remarkable improvements since 2000, from 37th ranked to 24 in 2012.
The advanced economies as a whole have fallen back since the global financial crisis hit in 2007, with the notable exception of Australia. “If we take a look at Romania’s economic development over a longer period of time, we see a remarkable evolution compared to the year 2000. But this is not a guarantee that our country will avoid the <middle income trap> and will make a steady transition to being a developed economy. We need a national project that will foster reindustrialization, attract foreign investments and help consolidate local capital in order to win the modernization wager”, stated Vasile Iuga, Country Managing Partner, PwC Romania.
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