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Romania's Economy
Currently, economy of Romania is steadily increasing the levels of GDP and significantly high levels of Foreign Direct Investment (FDI). Romania’s economy investment grade has recently been upgraded by Fitch and P&S. Romania benefits from the rising FDI flows due to the privatization process, and the advantages of its big internal market.(source: Romania monthly economic review - October 2008, Ernst & Young S.R.L.). Unsurprisingly, this economic growth has improved the wealth of the population. Bank loans have become more available, which increases the purchasing power of the population. The net average salary increased during the last 10 years by more than threefold. Household credits and mortgage shares of GDP had gradually increased, reflecting the growing strength of the nation’s purchasing power as well as its property market. Growth is clearly evident and is set to rise up as an increasing number of people move away from renting towards owning their own dwelling. Demand for commercial space is also increasing as the economy continue to expand. This is great for international property investors as there are clear exit strategies available. Emerging markets are great for investment because there is lots of room for growth as the economy matures. Good investors know it and this why experts from major firms and urban land institutes are first to invest, and express their confidence in this market. The Romanian economy has attracted FDI 8 times more each year since it became NATO member in 2004. This has completely changed the economy. The tourism industry in Romania is becoming more and more important. The contribution of Travel & Tourism to Gross Domestic Product (GDP) is expected to rise from 5.8% (9,352.5 million US Dollars) in 2008 to 7.0% (21,004.8 million US Dollars) by 2018. (Source: World Travel and Tourism Council). This suggests that the growth of tourism and overseas property investment is having a positive impact on the Romanian economy. |





