News

Daily Newsletter - 6 August 2019

Summary

Macroeconomic News (2)

Private consumption grows slower than salaries

The retail sector's turnover climbed 6.8% in the first half of this year, compared to the corresponding part of 2018. Food sales increased by 5%, similar to fuel sales, while non-food sales surged twice faster. Consumers seem to focus on electronics, IT&C, medicine and furniture.

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Teodorovici: We expect to approve the budget revision this week

The authorities are planning to approve the budget revision this week, according to Finance Minister Eugen Teodorovici. The Minister added that all major problems were addressed, with only minor details left to decide.

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Financial News (4)

Local banks issued RON 5.6 billion in mortgages in H1

June was the only month of 2019 when the value of new mortgages passed RON 1 billion. It was also the month that saw the biggest annualized contraction rate: more than 15%. Romanians took out RON 5.6 billion worth of new RON-denominated mortgages in the first half of this year, down more than 10% year-on-year.

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BNR keeps close eye on S&L banks

The National Bank of Romania (BNR) keeps a close eye on the savings&loans banks and is trying to keep the situation under control, according to Governor Mugur Isarescu. There are only two S&L banks operating in Romania: BCR BpL and Raiffeisen BpL.

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Borrowing growth slows down

The pace of borrowing is slowing down, mainly because of the macroprudential measures taken by the National Bank of Romania (BNR) last year, according to Governor Mugur Isarescu. The growth rate is below GDP growth, which makes it hard to add it to the aggregated demand increase that's pushing the adjusted CORE2 inflation upward, noted Isarescu.

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Mugur Isarescu: Main inflation risks are fiscal and revenue policies

The main uncertainties and risks associated to the inflation rate arise from the future fiscal policy and future revenue policy behavior, along with concerns over the current account deficit, according to the press release issued by the National Bank of Romania (BNR).

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Investment News (2)

NEPI completes Buzau shopping center extension

Real estate developer NEPI Rockcastle announced on Monday that the first stage of the Aurora Shopping Mall modernization process would be officially completed on August 8. The developer extended the mall, which would be renamed to Shopping City Buzau, at a cost of EUR 16 million. The extension is expected to create 120 new jobs in the new stores.

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Police to buy drones

The Romanian Police wants to spend EUR 900,000 on three drones in order to be able to undertake airborne surveillance missions, which would improve the effectiveness and efficiency of operations.

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Politics (2)

USR and PLUS vote to preserve alliance

Dan Barna and Dacian Ciolos, leaders of USR and PLUS, announced that the two parties' leadership structures had voted to preserve the alliance, following the good performance in the European Parliament election of May 26. The election and political alliance protocol was adopted by both sides, with amendments.

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PNL to begin collecting signatures for Iohannis presidential run

The National Liberal Party (PNL) announced it would start collecting signatures for the reelection campaign of Klaus Iohannis on the symbolic date August 10. The announcement was made by party leader Ludovic Orban, who added that the president had been invited to Thursday's PNL National Council meeting.

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Social (2)

Central and Eastern Europe looking for ways to stop talent drain

Central and Eastern European countries are proposing radical fiscal incentives to young people under programs designed to deter migration to the West. The talent drain is hurting the economic outlook of CEE countries, with young people taking disproportionate advantage of the freedom of movement and being more willing to search for better paying jobs in richer countries.

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Romanians looking for jobs even in summer

Even if summer is the time when most employees go on vacation, many Romanians continue to apply to jobs. Companies contacted for a survey say they received 18% more job applications compared to the previous month and more than 5% more applications compared to last year.

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