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September 18, 2019
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Dragnea: Industrial turnover registers 14.4 percent hike; strongest growth since 2014

PSD President Liviu Dragnea wrote on Facebook on Thursday that industrial turnover grew by 14.4 percent in March, the highest growth since 2014, INS data thus confirming that the Social Democrats’ governing platform is making the economy move.

“In March, Romania’s industrial turnover registered 14.4 percent growth. The strongest growth since 2014! This means new jobs, better paid jobs, meaning more money in Romanians’ pockets,” the Lower Chamber Speaker wrote.

Liviu Dragnea pointed out that “INS data confirms that the governing platform is making the economy move.”

The European Commission (EC) has revised downwards its estimates for this year with respect to the rise of the Romanian economy and the public deficit and warns that the uniform pay draft law represents a significant risk to the fiscal targets.

According to the spring economic forecast published on Thursday by the Community Executive, the Romanian economy is expected to record an advance of 4.3 pct in 2017, below projections in the winter forecast which were indicating a 4.4 pct GDP growth.

For 2018, the European Commission maintains its estimates that the advance of the Romanian economy is expected to slow down to 3.7 pct.

“The uniform pay draft law represents a significant risk to tax estimates, with a potential impact of up to 2 pct of the GDP on the government balance in 2018,” the EC warns.

With regard to inflation, the EC estimates that it will gradually increase and will return to the National Bank of Romania (BNR) target range due to robust domestic demand, new wage increases and new tax incentives. “The average annual inflation rate is projected to return to positive territory in 2017 (1.1 pct) and to continue to grow to 3 pct in 2018”, argues the EC.

 

Dobre: European Commission’s negative revision of deficit was based on bills under debate

 

PSD Spokesperson Adrian Dobre pointed out, in a communique released on Thursday, that the European Commission’s negative revision of its budget deficit forecast was based on bills currently under debate and the unified salary law should not be looked at separately when the impact on the deficit is calculated.

“Early this year we were criticised for raising salaries and cutting taxes, because such measures are allegedly not sustainable and will create economic imbalances. The European Commission’s new assessment underscores that we are registering solid economic growth as a result of tax cuts and salary hikes,” the PSD Spokesperson pointed out.

Adrian-Marius Dobre emphasised that the European Commission negatively revised its budget deficit forecast based on bills still under debate and which “cannot be analysed separately.”

The Social Democrat added that “the unified salary law that will indeed bring about many salary hikes should not be looked at separately when calculating the impact on the budget deficit.”

“There are complementary elements, such as the hiking of the minimum salary, the hiking of private sector salaries, measures tackling undeclared employment or limiting the abusive use of part-time labour contracts. All of this will bring in supplementary budget revenues that will compensate the unified salary law’s budgetary impact,” Adrian Dobre added.

The PSD Spokesperson claimed that the recent National Statistics Institute (INS) data on first quarter developments confirm that “the governing platform is starting to get the economy going.”

“The INS have published the first quarter data which show that at the start of this year our industrial turnover registered the strongest growth, namely 10.9 percent. This means we have healthy economic growth, which can create jobs and which gives us reasons to look optimistically on this year’s economic developments,” Adrian Dobre concluded.

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