THE IMPACT OF GLOBAL CRISIS ON ROMANIA’S ECONOMIC DEVELOPMENT

The world is passing through the most difficult economic and financial crisis inthe history, which severely affects its stability in the long term, risking an uncontrolled slideinto chaos and uncertainty. The housing market crisis emerged in the United States in July2007, due to multiple interferences generated by the globalization, has spread to otherregions, triggering the world economy into recession. The study is trying to present the maincauses and characteristics of the crisis, with special attention to its impact on Romania, whichhas witnessed a severe economic downturn in the first half of 2009, registering a sharpdecline 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 financingagreement with international organizations has been concluded. But, in the long term, theexternal debt burden is increasing, the sustainable development of Romania facing new risksarising from both the global crisis and the internal vulnerabilities.