Ups and downs for the Romanian economy

Ups and downs for the Romanian economy
Romania’s economy went up by 1.4 per cent in the second trimester compared to the same period last year, over the average 1.2 growth registered in the EU, but had an abrupt decrease compared to this year’s first trimester, the most significant among all the communitarian countries, EUROSTAT has announced.
The economy has decreased by 1 per cent in the second trimester compared to the performance registered in the first three months, a conclusion which has caught many by surprise.
Taking into account the progress registered over thr last trimester of 2013 and the first three month of 2014, Romania had basically the largest yearly economic growth among all the 28 EU member states.
But despite this, the economic increase slowed down over the second trimester of 2014, going down by 1 per cent compared to the first three months. In comparison, Romania’s neighbors, Hungary and Bulgaria had an economic growth of 0.8 % and, respectively, 0.5 % in the second trimester. Overall, EU registered an economic growth of 0.2 % in the second trimester compared to the first three months.
Both politicians and analysts were caught unawares by these figures released by EUROSTAT and confirmed by the National Institute of Statistics. They explain the sudden downturn of the national economy by a series of taxes introduced by the social-democrat government, such as fuel tax which backfired and the tex on special constructions, below the target taxt collection, poor performance in attracting EU funds and decrease of foreign investments.
Playing down the results, PM Victor Ponta said official numbers show Romania continus its economic growth trend by having “one of the most solid growths in the EU”. “Official data confirm the good news – Romania continues its economic growth! With + 2.6 per cent compared to the similar trimester last year, with + 9.1 % industrial growtg and within the + 2.5 per cent minimum economic growth slated for this year. We still have one of the most solid growth in the EU. It’s like driving at 130 km per hour and we are now going at 100 km per hour – but we are still moving on!”Ponta commented on his Facebook account.
Despite his concealed optimism, Ponta may have to brace up for difficult economic times, with the 1 per cent decrease signalling the beginning of a slow down in what the government has trumpeted to be a robut economic performance. With economic policies hastily implemented and with little public debate, Ponta may have to account for poor performance in this area over what will most likely be a heated electoral debate for the presidential elections in November where Ponta is a favorite for the time being.