Theoretical and Applied Economics (Mar 2024)
Analysis of the evolution of the net investments and constructions carried out in Romania at the end of 2023
Abstract
The investments, for any country, represent the important source of economic growth. Investments are made in all fields of activity, in all branches of the national economy, but also in the development of the housing stock, i.e. in construction. From this point of view, in this article, the authors aim to highlight how the realization of net investments and constructions in Romania evolved at the end of 2023. In this sense, the (provisional) data recorded at the end of last year will be compared, compared with the quarterly evolution in the year 2023, the achievements of 2023 compared to 2022 and even other previous years. From this point of view, recent data were used, published by the National Institute of Statistics through press releases no. 56 and 57 of March 12, 2024. The analysis carried out starts from the concrete data recorded, with two directions. On the one hand, the evolution of activity in these two sectors of activity, that of total investments in the national economy and that of investments in housing construction. In the analysis carried out, it was aimed that the data be successively compared by quarter, in order to determine the trend of these total investments in the national economy. It is very important to emphasize that investments play an important role in ensuring macro-stability and registering an upward course. The establishment of investments made in several fields of activity, such as in new constructions, machinery including means of transport, other expenses that were made within the national economy, was considered. Regarding the results recorded by Romania in the field of housing construction, we performed an analysis based on comparative data, between the year 2023 and the year 2022, between the 4th quarter of 2023 and the 4th quarter of 2022, as well as the trend of the evolution of these investments in new housing constructions. In carrying out the study, we used a series of statistical-econometric methods, among which we mention the structure indicators, the data being suggestively presented through tables and graphic representations. This article is meant to highlight that progress has been made in the area of net investment compared to 2022 and previous years. It should be noted that these past three years, 2021 - 2023, were years in which overlapping crises had an effect (pandemic crisis, economic-financial crisis, energy and food crisis), all taking place simultaneously, with effects from the most harmful for the evolution of the national economy in all fields of activity, as well as for the maintenance of macrostability. There is an improvement in net investments in all fields of activity, as a result of own sources, community sources, foreign direct investments. In terms of the new housing stock made through investment, it has decreased as the prices of raw materials and labor have increased due to high inflation, as well as the increase in the price of new housing, which is becoming increasingly difficult to afford to those interested in purchasing their own home. This is actually a paradox, in the sense that the need for housing is still high enough, but the possibility of procurement is decreasing more and more. Another aspect we mentioned in this article is that in the field of construction, Romania faces a labor shortage. This is because salaries and some facilities granted until now have decreased and the labor force from abroad, especially from Asian countries, has decreased and will continue to decrease as a result of Romania’s status as a Schengen member in the air environment. In this article, we have used graphical, tabular and other statistical representations to clearly highlight the developments that have taken place in these areas of activity.
