The indicator regarding economic expectations rose 4.6 points to -11.5 points in the third quarter from -16.1 points in April-June, according to the GfK Consumer Climate Europe survey for the third quarter of 2013.
The indicator regarding income expectations improved to -4.5 points from -5.3 points, and the one concerning willingness to buy rose to -21.1 points from -22.5 points.
“For 2013, all experts are anticipating a slight revival in the so far extremely weak Romanian economy. The forecasts for this improvement vary from 1.6 percent to 2.0 percent. Between 2014 and 2016, the Romanian economy is expected to see growth of between 2.7 percent and 4.3 percent. According to current estimates, GDP rose by 0.5 percent in the second quarter. The overall economic framework conditions are favorable: national debt is at around 34 percent, the budget deficit is around 2.5 percent and unemployment is in the region of 7 percent,” the survey reads.
According to the document, Romania still needs a number of reforms in order to keep pace with other European countries.
“A great many companies are still owned by the state. Hopes for further privatization were dashed again and again in the chemical, mining and transport industries, in particular. There are also still problems with regard to the judicial system and the black market,” the survey reads.
The report notes that private consumption is playing an important role in Romania and real income is rising.
“In central Romania, for example, some areas have virtually zero unemployment. The additional weak area of professional training was recently reformed. Since 1989, the country had barely invested in this area, but now there is a new legislation, on the basis of which professional qualifications can be completely rebuilt. This relates to practical qualifications, which aim to meet the demand of local labor markets by working in close collaboration with business and state institutions. The aim is to guarantee the availability of qualified professionals and at the same time offer young people good career prospects. This is a key step, particularly in view of high youth unemployment.”
Europeans expect the worst of the crisis has been overcome and that the economy is gradually beginning to recover, the survey notes. “A number of countries registered considerable growth in some areas in the second quarter, while the downward trend at least slowed down significantly in others.”
The survey polled consumers in 14 European countries.