Bulgaria, Romania consume more than they produce
About 88% of the EU total gross domestic product belongs to the EU old member states, 9% - to the ten states that joined the bloc in 2004, and only 3% to Bulgaria and Romania. In spite of that, the share of nine of the states is growing. Data of the Vienna Institute for International Economic Studies shows that the economic growth in these countries in 2006 reached 6.5% and will maintain a level of 5.4% in 2007, which is almost twice higher than the expected growth in the other part of the EU.
The Vienna Institute for International Economic Studies says that foreign trade in the last few years has been the major reason for the economic growth in the new member states. There seems to be a change now: on the one hand, there is an upward trend in domestic consumption due to the purchasing capacity and the rising wages. On the other hand, the Bulgarian and Romanian households are resorting more and more frequently to consumer credits allotted by banks. They spend the credits on products, most of which are imported.
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