Export growth unable to pull Romania out of crisis

Exports continued to increase in June stimulated by foreign demand and reached a 3.3 billion-euro high, while the first half level exceeded the value in the same period of 2008, the best year in Romania’s history.

However, even though they have been following an upward trend throughout this year, exports have been unable to give the economy a boost towards a rebound, so that it will continue to struggle in recession in 2010, as well.
Despite the positive expectations at the beginning of the year, the outlook on the economic performance has worsened.
At the beginning of the year, exports were seen as the solution to drive Romania out of recession. However, in the absence of a rebound of domestic demand, of consumer spending, an economic decline of some 2% is shaping up for 2010. The hope for an economic recovery has been pushed back for 2011.
The export potential is limited, considering the prospect of a slowdown of the rebound of the EU countries, Romania’s main commercial partners, as well as the low share of exports in the GDP, of about 30%.