Sizes Of Romanian Economy'S Non-Performance

Although economic and financial indicators show a relatively good situation at national economy level, however there is a number of tensions at microeconomic level. A profoundly negative issue is the size of losses reported by many Romanian enterprises that largely cancel the profits generated by the other economy, namely sound businesses. Losses are distributed in different shares both at corporate and SME levels, both in public and private companies. In recent years, after the onset of the crisis, the total amount of losses has annually exceeded 40 billion, meaning between 7 and 10% of the national GDP. The negative character of losses in more than a third of Romanian companies along with over 10% of companies with zero outcomes, beyond the idea that almost half of the economy “is not working”, with such enterprises that have failed the objective which they have entered the market for, that is making profit, also means a reduction of the GDP, a contamination of sound businesses by non-performance, lower budget revenues and expenditures, a lower potential GDP.