University professor Cristian Socol, about the entry of the Romanian economy into technical recession

The Romanian economy is facing a significant downturn, recording a 1.9% decrease in GDP in the fourth quarter, which places it in technical recession, alongside Ireland. This recession particularly affects Romanians with low and medium incomes, teachers, doctors, and small companies. Authorities are trying to redefine the economic situation by introducing the concept of "positive economic downturn," which raises questions.

The analysis distinguishes between technical recession, defined as a decline in economic activity for two consecutive quarters, and deep recession, which involves a significant and widespread economic contraction. Data suggests that Romania could be in a deep recession, considering the drastic declines in consumption, income, and purchasing power. Macroeconomic indicators, such as industrial production and orders, show negative trends, and the construction sector has experienced a sudden slowdown.

Although the unemployment rate has not increased significantly, employment stability is temporary, and companies are starting to freeze hiring. The conclusion is that Romania is in a deep recession, with downturns in the economy and society, and recovery measures must be urgently implemented to avoid a more severe economic and social crisis.