THE SERVICE SECTOR - ECONOMIC ENGINE HINDERED BY THE INFRASTRUCTURE FAULTS

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Professor Radu Pencea writes about the strong connection between the services sector of the economies and infrastructure. As Prof. Pencea argues, services tend to make their way to becoming more and more important in the formation of gross domestic product all around the world.

Yet, the sector cannot be fully developed without an appropriate infrastructure that can support further expansions of the tertiary sector of the economy. As far as Romania is concerned, the active population in the service sector is of a mere 51% (well below the 70% of more developed countries).

When it comes to its contribution to GDP, the tertiary sector is also disappointing compared to the favourable background Romania has. Unfortunately, the drawback stems from our rather clumsy politics, argues Prof. Pencea. In the end, few people would choose to spend their holidays in a region where there is a crying need for reliable transports and no comfort, despite great natural resources at any time of the year.

The way to make services more important in Romania’s economy would be to get things going in the direction of modernizing the infrastructure, concludes Prof. Pencea.