The effects of economic crisis in Romania

Abstract

After a 7.1 percente economical increase in 2008, Romania was concerned with the trust in 2009 and less expected that the current financial crisis that began in the U.S. and Europe already spread to produce severe consequences on the Romanian economy. The result was a return of 180 degrees in the economic situation, which demonstrated that the development model that followed until then, one based on consumption was unsustainable. Considerable drop in the volume of goods exports and tightening credit conditions have led more companies to restrict their activity leading to an accelerated increase of unemployment of around 60, among the highest in the European Union.