Romania reported the largest annual economic growth in the EU

Preliminary figures made public by the European Statistics Bureau, Eurostat, show that Romania has reported, in the first quarter of this year, the biggest increase in its GDP in the European Union, as compared to last year’s results.

Romania’s gross domestic product grew by 3.8% in the first quarter of 2014 as compared to the EU’s average increase of 1.4%, mostly due to consumption and industrial output.

Domestic demand is an important factor in the case of Germany as well, which has prompted a 0.8% growth rate, twice as much as the experts’ estimations.

However, diminishing consumption and investors’ fears have caused a decline of the Eurozone’s second largest economy, France.

According to the Eurostat, in the group of countries facing economic problems Cyprus ranks first, followed by Estonia, Greece and Italy.

There area also countries whose economies performed better in the first quarter of 2014 as compared to the same period of last year, such as Britain and also Spain and Portugal, that underwent extensive austerity and reform programmes.

On the other hand, prices went up by an average 0.8% in the EU, triggered by an increase in the price of electricity, cigarettes and holiday packages.

Prices in Romania and Austria have seen the fastest increase rate in the EU.

The Eurostat report follows after earlier this month the European Commission upgraded Romania’s economic growth forecast for 2014 and 2015, which the Commission estimates to stand at 2.5% and 2.6% respectively.

However, Romanian Minister Delegate for Budget Liviu Voinea is even more optimistic, hoping for as mush as 4%.

Although Romania’s significant economic growth does not help this country catch up with the other EU states and switch to the Euro by 2019, it still is an important step ahead, deputy governor of the National Bank of Romania Bogdan Olteanu has said.

Bogdan Olteanu has pointed out that, except for Poland, all countries in the region have seen the economic crisis as a break in the process of bridging the gap between their economies and the EU’s developed economies.

"In 2007 and 2008 prospects were quite good, but then things stagnated. In most cases, the process was resumed and many countries in the region have developed at a faster pace than the EU’s stronger economies", Olteanu has explained.

The National Bank official has also approached the issue of lending in Romania, which has started to improve, after years of stagnation. As for the real economy, Bogdan Olteanu says, it has seen a slight increase in domestic demand.