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Daraban warns: Italy got into recession and Romania handles figures as if they wanted to populate the moon

The Romanian authorities should take into consideration the foreign factors and the effective achievements of the  companies when they analyse the economic growth of the country, not to rely on the increase of the GDP only, stated on Friday the chairman of the Chamber of Commerce of Romania (CCIR) Mihai Daraban, during a press conference.
Daraban reminded that Romania is exposed to a very high risk, given that 75% of the country's trade is with countries in the European Union.

‘There is a permanent danger of recession. You have seen Italy, which announced officially that they got into recession.This should make us think, as there are 47,240 companies with Italian capital in Romania. Do not think that the companies with Italian capital in Romania will not be affected by the recession in Italy. And they are significant companies, to tell the least’ the CCIR official said.

According to him, in reality, Romania does not have an economic growth higher than 3-4% since Italy is in recession and Germany announced a leap of only 2%.

‘If Germany has 2% we can have 3-4 % but not more, I think, as one thing is economic growth and another thing is the GDP growth. So, we have to take into consideration these foreign factors. Germany has a growth of 2.2%. We only have figures of this kind as if we are going to populate the moon. I think we should be more realistic’ he said.

Daraban said that he requested the authorities that, after all companies in the country publish their financial balance sheets, to have a clear analysis with regards to the total turnover which is the profit in exploitation,which is the gross profit, which is the net profit, which are the losses and then’ to talk about exclusively economic growth’.

‘We well know that the definition of the GDP includes variables which do not depend on the economy, such as consumption,  a consumption of goods from import, which influence upwards the GDP. And let me tell you, I have seen countries, including Venesuela, which some years ago – now they no longer give their GDP due to hyperinflation – but somewhere during Chavez’s time  they said they had over 350 billion dollars GDP and they were starving. In Argentina, the same. So, it is not GDP only that increased or decreased that matters but we have to focus on the results of the judicial people in Romania, irrespective of the form of capital, and then we draw conclusions, how much was paid, how much was not paid’ Daraban said.

He said that there are 212,000 companies with the Registrar of Commerce which are registered as active and functioning but which did not lodge the balance sheets.