Is economic growth sustainable in Romania?

Abstract

The last events which took place after the 1st January 2007 and Romania’s admission in the European Union imply a sustainable and continuous economic growth, in order to reduce economic and social disparities between our country, EU average and other EU members, through a mobilization of the intern capital and labour force potential. Given this context, the paper aims at identifying and explaining, through a retrospective analysis, GDP fluctuations and tries to evaluate, using the aggregate supply-demand model, the contribution of each structural element in GDP formation and increase. Finally, the article proposes directions of action for continuing the sustainable development of Romania and reducing the gaps between this country and other EU members.nominal GDP, real GDP, aggregate demand, aggregate supply, growth factors