Total foreign investments in Romanian companies exceeded EUR 50 billion
in 2022. The top three sources of investments were the Netherlands (EUR
9.3 billion), Germany (EUR 5.4 billion) and Austria (EUR 5.3 billion),
according to data from the National Trade Registry Office analyzed by
the ONV LAW Law Firm. The biggest foreign investments were absorbed by
local companies activating in wholesale and retail trade and in the
field of automotive and motorcycle repair (25.05%), by those in the
segment of professional, administrative, scientific and technical
activities (20.81%) and by those operating in transport, storage and
communications (19.6%).
Total industrial producer prices (domestic and external markets) grew
by 32.8% in 2022, after the energy industry posted a 69% advance,
according to data from the National Institute of Statistics (INS).
Moreover, the production of non-durable goods recorded a 20.5% increase
in costs, the intermediate goods industry - 16% and the durable goods
industry registered a 14.8% advance in prices. The smallest price
increases were recorded in the capital goods industry, of 9%.
Nearly a quarter of Romanian investors (23%) fear a global recession
this year, 21% fear inflation and 18% fear an international conflict,
according to a survey conducted by an investments platform. Moreover,
9% of them fear a possible increase in taxes. 28% of Romanian
individual investors still consider inflation as the biggest risk to
their portfolio in the first three months of this year. Inflation is
followed in the risks ranking by a possible recession of global
economy, by international conflicts and by concerns related to the
state of Romanian economy.
Euro area inflation slowed in January for the third consecutive month,
to 8.5%, amid a significant drop in energy costs, according to
preliminary data published on Wednesday, CNBC reports. Inflation rate
was 9.2% in December. Energy remained the biggest cost generator in
January, but costs fell again compared to previous levels. Energy price
inflation slowed to about 17.2% in January from 25.5% in December.
However, food costs rose slightly from 13.8% in December to 14.1% in
January. The 20-member region experienced substantial price increases
in 2022 after Russia’s invasion of Ukraine led to rising energy and
food costs.
The Ministry of Finance borrowed RON 1.08 billion from banks on
Thursday, 2 February, through a government bonds auction with a nominal
value of RON 500 million, maturing in April 2036, at an interest rate
of 7.46% per year. Seven primary dealers participated in the auction.
Total demand amounted to RON 1.9 billion, of which banks bid RON 1.86
billion on their own behalf and RON 10 million on behalf of clients.
The coupon rate was 4.25% and the yield to maturity for the average
auction price was 7.43%.
Ștefan Stavrositu, a former Sales Director at Groupama, has been
appointed Chairman of BCR Asigurări de Viaţă VIG’s Board of Directors,
having taken over from Erwin Hammerbacher, who retired at the end of
2022. Ștefan Stavrositu’s mandate was approved during the Financial
Supervisory Authority’s meeting on Wednesday, 1 February. Erwin
Hammerbacher has held the position of Chairman of BCR Asigurări de
Viaţă VIG’s Board of Directors since October 2017, and prior to this
appointment, he had been a member of BCR Asigurări de Viaţă VIG’s
Supervisory Board.
The acquisition by OTP of Slovenian bank Nova KBM has been approved by
Slovenian antitrust authorities. Once the transaction is completed, the
merger process between SKB and Nova KBM will begin and Slovenia’s
largest bank - in terms of deposits and loans - will result from it.
Following the finalization of this transaction, OTP will become the
leading bank on the Slovenian market. Even though the value of the deal
has not been made public, the Hungarian financial institution allegedly
paid almost EUR 1 billion, according to media reports.
Furniture and home decoration retailer IKEA, one of the biggest such
retailers on the local market, is to open its third store in Romania
this summer, where it has already recruited about 50 employees. The
company is still looking for another 250 people for this store, which
it started building in November 2021. The investment amounts to EUR 60
million, and the store will have a 26,000 square meter area and will be
located on an 85,000 square meters plot of land. The warehouses will
spread on 4,000 square meters, according to data previously provided by
the company.
Romanian medicines manufacturer Antibiotice plans to invest over RON 88
million in 2023 in its production platform in Iasi, from its own
sources and from reserves, according to the revenues and expenditure
budget proposed by the company for 2023. Most of the proposed budget is
for new investments - almost RON 32 million, half of the sum being
dedicated to the development of the products portfolio. Antibiotice
Iasi has a strong research division, a clinical trials center since
2006, both for its own products and for external clients in Europe.
Medisprof Cancer Center, a company founded by physician Carolina Udrea
that owns a hospital in Cluj Napoca providing services to cancer
patients, will start construction works on its second oncology hospital
next year. The new diagnostic and treatment center will spread on
almost 7,000 square meters, double the size of Medisprof Cancer
Center’s (MCC) current hospital. Construction costs have been estimated
at EUR 12 million and the investment in latest generation equipment
will be EUR 10 million. Construction works will start in 2024 and the
completion time is 24 months, according to officials.
Scandinavian furniture and home products retailer JYSK continues its
expansion in Romania and plans to open at least 15 new stores in 2023
and to modernize at least 13 older stores. The first store to be
modernized this year is JYSK Brasov Coresi, which will reopen on 9
February 2023. JYSK plans to modernize another 12 stores By August
2023. The first new store this year is planned for the end of February
in Târgoviște, and in spring the retailer will inaugurate 4 more new
stores in Dej, Rădăuți and Câmpulung Muscel.
The Constitutional Court of Romania (CCR) has found that the Government
Emergency Ordinance on the transport of students who go to school in a
different locality than the one they reside in is unconstitutional. In
essence, the Court has acknowledged that no evidence was provided that
the Economic and Social Council’s opinion had been requested, in
violation of the provisions of Article 1(3) and (5), corroborated with
those of Article 141 of the Constitution. As a consequence, Government
Emergency Ordinance 50/2021 was declared unconstitutional in its
entirety, according to a press release issued by the institution.
Two draft laws completing the package of measures aimed at increasing
birth rate in Romania will be submitted to Parliament. They aim to
ensure a child-raising allowance and respect in public for pregnant
women or parents with children under five. The minimum value of the
allowance will therefore be 60% of the gross minimum wage in economy
and the maximum amount will be four times the value of the gross
minimum wage, i.e. RON 12,000, compared to RON 8,500 at present.
In February, the government wants to start amending the primary
legislation on the obligation to sell OMV Petrom shares from the
state’s stake in the largest oil and gas producer in Romania,
controlled by the Austrian group OMV, to former employees of the
company from 1997-2004, as the Energy Ministry is due to issue an
order, at the middle of the month, setting out the procedures,
deadlines and conditions for the sale of shares. This concerns the
amendment of Government Ordinance 55 of 14 August 2003 on certain
measures for the privatization process of "Petrom" SA Bucharest
National Oil Company.
EU lawmakers approved the internal market (IMCO) committee’s text on
the Regulation on Political Advertising, paving the way for the next
phase of the legislative process. MEPs on Thursday (2 February) voted
in favour of IMCO’s report on the initiative, with none of the
amendments tabled at the plenary stage adopted. The measure passed with
433 votes in favour, 61 against and 110 abstentions. The regulation,
originally announced in December 2020 as part of the Commission’s
Democracy Action Plan, is intended to increase the transparency of
political advertising and tackle the issue of foreign interference in
electoral campaigns.
A total of 98,011 cases of acute respiratory infections - clinical
influenza, acute upper respiratory infections (ARI) and pneumonia -
were reported during the period 23-29 January, the National Institute
of Public Health (INSP) announced on Thursday, 2 February. According to
the source, there were 5% fewer cases compared to the previous week.
The number of cases recorded in the same week of the last epidemic
season (2019-2020) was 102,981, the INSP indicated.
Romanians spend the most money among Europeans on food - RON 250 out of
RON 1,000 -according to Eurostat data. Experts say the high prices,
compared to the low wages, combined with the food waste that
characterizes Romania are to blame for this situation. In 2021, EU
households spent more than EUR 1.035 billion (equivalent to 7.1% of
total EU GDP) on "Food and non-alcoholic beverages". This represents a
14.3% share of total household expenses, compared to the 14.8% share
recorded in 2020.