After almost a decade of very strong GDP growth, Romania is preparing for a sharp economic slowdown, according to Dimitrios Goranitis, Head of Banking and Capital Markets Consultancy at Deloitte Central Europe. According to the European Commission’s report of 11 November 2022, Romania will end 2022 with 5.8% GDP growth, a sign of post-pandemic economic recovery mainly based on domestic consumption. On the other hand, however, the estimated GDP growth for 2023 is below 2%, with a rather negative outlook, as Romania has delayed the drawing up and implementation of the National Recovery and Resilience Plan (PNRR), leading to a decrease in future investments. According to the European Commission, Romania is not expected to benefit from significant external support.
Romania has recorded the biggest economic growth in Europe in the past 22 years, nearly 800% according to a map published by Reddit, based on Statista data. However, Romania has a huge gap to fill, given that its GDP in 2000 was only USD 37.28 billion. In 2022, it is estimated to reach USD 286.51 billion, according to Statista data. As a comparison, Germany, the engine of the European economy, had a GDP of USD 1,948 billion in 2000, and in 2022 it is estimated to reach USD 4,031 billion.
The annual advance of world trade volume slightly accelerated in September 2022, to 5.6%, from 5.4% in the previous month, amid a 0.1% monthly increase, following a 0.8% advance in the previous month, according to the latest World Trade Monitor report drawn by the Dutch institute CPB. Global imports’ annual growth decreased to 6%, from 6.3%, amid a monthly decline of 0.2%, while exports’ annual advance accelerated to 5.2%, from 4.4%, amid a 0.4% monthly increment.
Managers expect an increase in activity and prices in retail trade, as well as relative stability in the number of employees in the manufacturing industry and services, according to data published by the National Institute of Statistics (INS) on Monday, 28 November. Within the November 2022 survey, managers in the manufacturing industry estimated relative stability in the volume of production for the next three months (cyclical balance -2%).
Nicolas Edmond Naouri has received the Financial Supervisory Authority (ASF)’s approval to take up the position of deputy general manager at Groupama Asigurări, according to information provided by ASF. Nicolas Naouri has served as Chief Financial Officer (CFO) at Groupama since August 2017, and has more than 6 years of experience within Groupama. Previously, he had held a position in the financial area within AXA, during the period 2010-2011, after having worked for PwC as an audit manager for five years.
Total household and corporate bank deposits have started decreasing, as prices continue to grow, with inflation having exceeded 15%, while interest rates on RON-denominated bank savings barely reach half of all the increases in 2022. Data published by the National Bank of Romania (NBR) show that deposits of resident non-government clients, i.e. total household and corporate bank deposits, decreased by 0.2% in October compared to September, to RON 490.8 billion.
The Financial Supervisory Authority (ASF) has authorized Kuldeep Kaushik for the position of general manager at NN Asigurări de Viaţă, according to the information transmitted by the institution. In August 2021, NN Group announced Kuldeep Kaushik’s appointment as CEO of NN in Romania, effective 1 November 2021, his term being subject to local authorities’ approval. Mr. Kuldeep took over the helm of NN from Gerke Witteveen, NN’s Chief Financial Officer in Romania, who had served as interim CEO for a limited period of time.
Raiffeisen Bank and Edenred, the main player on the Romanian fringe benefits market, have entered into a partnership to facilitate access for the bank’s SME clients to the products in Edenred’s portfolio – food vouchers, gift cards, holiday cards and cultural cards. As a result, starting from this year, Raiffeisen Bank’s SME clients will find in the bank’s branches all the necessary information regarding the products offered by Edenred: Food Ticket Card, Gift Card, Cultural Card, Holiday Card and the Benefit platform.
On Monday, 28 November, Galaţi County Council was handed over a new building for the specialized outpatient department of "Sfântul Apostol Andrei" Emergency County Clinical Hospital, an investment that amounted to about RON 14 million. The new building, which will house 13 medical specialties, has three floors and an over 1,500 square meter area. The medical equipment needed for the new spaces, worth more than RON 2.1 million, has also been purchased, and the former family doctors’ medical units have been completely modernized.
CTP, the biggest listed developer and manager of industrial and logistics spaces in Continental Europe, plans to expand the existing project, CTPark Bucharest South, to approximately 150,000 square meters. The project already has 70,000 square meters of existing warehouses and 15,000 square meters of additional warehouses to be delivered in the following period. CTPark Bucharest South is located between Bucharest ring road and the future A0 highway, with direct access to A0, ensuring rapid access to any area in and around Bucharest.
E.ON Energie Romania announced on Monday, 28 November, that it had finalized and handed over 68 photovoltaic power plants this year for more than 60 partner companies, representing investments of more than EUR 11 million, almost double the level recorded in the entire 2021. The solar power plants were designed to meet each partner’s specific needs and requirements and ensure between 34 and 100% of their energy needs.
The Presidential Administration has announced that on Monday, 28 November President Klaus Iohannis promulgated the law amending and completing Article 11 of Law 51/1991 on Romania’s national security. The normative acts amends the legislation in the sense that mayors of sectors and county capital cities can benefit from information in the field of national security.
On Monday, 28 November, President Klaus Iohannis promulgated the law amending and supplementing Government Emergency Ordinance (OUG) 77/2009 on the organization and operation of gambling, the Presidential Administration has announced. The normative act initiated by Liberal (PNL) deputy Florin Roman stipulates that gambling halls will keep electronic records of those who enter these places.
On Monday, 28 November, President Klaus Iohannis sent to Parliament, for re-analysis, the Law approving Government Emergency Ordinance (OUG) 60/2020 which establishes the legal framework for the implementation of EU Regulation on the provision of port services and on the financial transparency of ports. The Head of State pointed out that the law adopted by the Parliament "uses unclear terminology in presenting the field of study" and that "the absence of transitional norms to ensure compliance with the new legal requirements and maintain the consistency of the normative framework applicable to the selection of members of port administrations’ governing bodies may cause difficulties in implementation".
The EU is stepping up its efforts to promote civic engagement and political participation with a new initiative targeting young people in third countries through its Youth Action Plan. The plan was first presented in October by the EU Commission in a bid to "increase the voice and leadership" of young people in decision-making within the bloc’s external action for 2022-2027. On Monday (28 November), the EU Council agreed on conclusions on the new initiative and called on the Commission, the EU external action service and member states to "mainstream meaningful youth participation and engagement in international fora and at multilateral, regional, country and local level".
Family Minister Gabriela Firea has announced that the National Strategy for promoting equal opportunities and treatment between women and men and for preventing and combating domestic violence for the period 2022 - 2027 was finalized, received all the necessary opinions from the ministries and was sent to the Government’s General Secretariat (SGG), the Legislative Council and the Economic and Social Council. Gabriela Firea has explained that with the help of this strategic document, Romania will be able to obtain non-reimbursable funds from the current European financial framework for projects aimed at preventing and combating domestic violence and at promoting gender equality.
Save the Children Romania organization has inaugurated in Bucharest the Counselling and Integrated Service Centre for Ukrainian refugee children and their parents. Ukrainian refugee children attending school are less likely to feel lonely, but school enrolment rates for children who have fled the war in Ukraine remain worryingly low in Europe, according to recent data from an international Save the Children report.