The price of restructuringless economic growth: stocks

The warming up of Romanian economy engines, which should generate 4.5% GDP growth this year, brought along the activation of certain productive capacities in H1 this year, which cannot find an outlet. This was actually one of the main risks posed by maintaining companies that can only increase arrears in the economic circuit.

The accumulation of stocks, which in many cases come to exceed the monthly output volume, is a reality in many industries, but especially in those industries manufacturing intermediary goods.

The increase in the production of stocks was criticised by PM Adrian Nastase, as well. He says that large stocks have been produced in H1, so that there are many goods for which stocks exceed one month’s output, such as cloths, lumber, fertilisers, rubber, and synthetic fibres.

“Large stocks have been manufactured; there are many products for which stocks exceed one month’s production – cloths, concrete prefabs, TV sets and all sorts of road transport means,” PM Adrian Nastase said.

The widest gaps between stocks and monthly output volume are registered in the durable goods sector. The TV set stocks have come to be three times larger than June’s output. At the same time, a series of goods such as chemical fertilisers and lumber register stocks twice larger than the monthly output.