THE IMPACT OF GLOBAL CRISIS
                     ON ROMANIA’S ECONOMIC DEVELOPMENT

             Zaman Gheorghe, Institute of National Economy of the Romanian Academy
             Georgescu George, Institute of National Economy of the Romanian Academy


ABSTRACT: The world is passing through the most difficult economic and financial crisis in
the history, which severely affects its stability in the long term, risking an uncontrolled slide
into chaos and uncertainty. The housing market crisis emerged in the United States in July
2007, due to multiple interferences generated by the globalization, has spread to other
regions, triggering the world economy into recession. The study is trying to present the main
causes and characteristics of the crisis, with special attention to its impact on Romania, which
has witnessed a severe economic downturn in the first half of 2009, registering a sharp
decline in industrial production, construction sector, exports and also in the lending activity.
To deal with high budget deficit and liquidity pressures in the short term a financing
agreement with international organizations has been concluded. But, in the long term, the
external debt burden is increasing, the sustainable development of Romania facing new risks
arising from both the global crisis and the internal vulnerabilities.

Key words: international financial crisis, global recession, causes and effects of the crisis, anti-crisis
remedies, external debt, sustainable development.

JEL codes: E44, F01, G01, G15.