Economy, growth under 1%

After the disappointing pace in the first semester, the Bank says that the Gross Domestic Product growth has slowed down even in the third trimester, meaning that the economic growth for this period has been less than the minimal 1.1% reached in the first trimester.

According to the Bank, the slowdown is related to the further drops in consumption and private investment, and also with the government’s withdrawal from high spending right after the election. From the beginning of the year, the Bank has declared that the economic growth for 2013 would be in the same levels of one year ago, at around 1.6%.

But the newly published report of the monetary policy has been put in doubt for the first time, since there are more risks for the plunge to continue.

The only hope for the economy to stay at least in the minimal level of last year, according to Bank experts is increasing the government spending in the last trimester, by bringing the public debt level to a new record. But besides 2013, the biggest concern is year 2014. The consumption crisis and the internal investment crisis now has also the negative effect of foreign demand.

With the public debt in dangerous levels and with the export slowdown, the fate of economy for the next year is related to the family spending. If the consumption crisis will continue, same as it did this year, the danger for the economy to fall into stagnation is probably even higher.

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