The managers of Romanian companies are expecting economic activity to grow in the October-December 2008 period, except in the construction sector, and estimate that there will significant rises in prices, according to an inquiry published by INS.
As such, according to opinions expressed by company managers in October 2008, there will be moderate growth in the processing industry and retail in October-December 2008, with a ten-fold drop in construction activities, and a positive trend in services, compared to the three previous months, reports INS.
The result of the poll has come as a surprise to the market, which has also significantly adjusted projects due to the crisis. “This optimism is blamed on delayed information. One month ago, when this data was collected, managers did not yet know what to expect. However, if Romania exports 70 percent to the EU, and they go into a recession, we go in too,” according to an explanation for Business Standard by the Secretary-General of the Association for Romanian Business People (AOAR), Cristian Parvan.
Even the forecast regarding a rise in prices is questioned. “One of the dangers being considered is disinflation. If demand drops, merchants could, theoretically, drop prices to zero profit,” added Parvan, who stated that this would lead to the impossibility of companies to continue making investments.
