“Sad but true: the national economy economy is dying and there are no apparent signs of recovery any time soon”, Veaceslav Ionita, of the think-tank IDIS Viitorul, wrote on his blog.
To illustrate, Ionita said that lending to the economy has been on the decrease for almost three years. In particular, loans offered in the second quarter of this year stood at 34.2 billion lei compared to 47.2 billion lei in the third quarter of 2014, a 13 million lei drop not accounting for inflation.
Measured by GDP, the situation looks even worse: lending to the economy amounts now to 24.2% of GDP, the lowest percentage in the last few years and by 70% lower than the maximal level seen in the third quarter of 2014.
Ionita says that if we were to keep the same GDP proportion, lending should have currently been at 59 billion lei, or by 25 billion lei more. In his opinion, the national economy’s inability to absorb funding is a clear illustration of its calamitous situation.
