ECONOMIC GROWTH - AN ILLUSION? STUDY CASE:ROMANIA

• Main Authors: Camelia MORARU, Norina POPOVICI
• Format: Article
• Language: English
• Published: Romanian Foundation for Business Intelligence 2013-12-01
• Series: Cross-Cultural Management Journal
• Subjects: Growth; Fiscal policy; GDP
• Online Access: http://seaopenresearch.eu/Journals/articles/CMJ2013_I2_4.pdf

Literature has devoted considerable attention to economic growth because it creates the premises for achieving major goals such as route out of poverty of underdeveloped countries or contribute to raising the standard of living in developed countries. Economic growth has become an “order of the day” term, propagated by various "players" of economic and social life, in this way gaining various interpretations and meanings. This paper presents the results of the measures adopatate in order to recover Romanian economic situation. The austerity measures adopted until recently not allowed, however, to create a favorable environment for growth, taking into consideration that it is almost impossible for an economy to grow when conditions are limiting. Fiscal policies have focused on reducing the budget deficit, which led on slaughtering economic growth. Given the uncertain economic context, FDI was hardly drew into our country, their value last year has been insignificant. We can even say that the previous ended year was one economically, because our country did not recognize the road to the economic recovery.