The Macroeconomic Variables’ Impact on Industrial Production in the Context of Financial Crisis

For an economy to be healthy as a whole, it is necessary that all parts to be healthy, in turn. A good financial condition at micro level contributes to a good financial condition at macro level, but the favorable evolution of the macroeconomic variables contributes to the proper functioning of a business, too. Therefore, maintaining firms’ financial equilibrium is absolutely necessary. Moreover, under globalization, maintaining economy's equilibrium has become a global issue whereas a national problem in the economy can affect the world economy. The impact of the financial crisis, unleashed in 2007 in the United States, on the world economy raises many controversies and questions. This is why it will be a topic debated for a long time from now on. Having as starting point the banking crisis, the effects of the global financial crisis have been propagated in Romania starting with October 2008. The delay took place due to the lower level of financial markets’ development compared with developed countries. So, it is important to capture the ability of maintaining firms’ financial equilibrium given the fact that one of the most important branches of the economy – the banking system - shows strong shocks. In other words, this paper analyses to what extent have companies felt the shocks and risks from the banking sector (which is closely related to them)? Furthermore, the consequences of the financial crisis on the enterprises’ financial results in the Romanian economy will be identified. Therefore, the main purpose of this work is to capture the macroeconomic variables’ impact on the firms’ ability of maintaining balance in terms of debt service and yield results. This includes identifying any existing imbalances and finding solutions to restore balance and obtain performance. The main objective of an enterprise management is to achieve high company performance. So, the micro and macro financial indicators have a key role in measuring the companies’ financial position. This study shows that maintaining balance becomes indispensable to the national economy and captures the financial shocks influence on the microeconomic equilibrium where business capacity to deal with the effects of the financial crisis has a crucial role.