CFA Romania’s Macroeconomic Confidence Indicator grew by 5.4 points, to
43.3 points, according to a press release. This was due on the one hand
to a 6.3-point increase in the current conditions component, and on the
other hand to a 5.0-point increase in the expectations component. The
expected inflation rate for the 12-month horizon fell by one figure, to
an average of 9.18%. For 2023, the expected value of real GDP growth
rose slightly against the previous year, to 1.9%. Public debt as a
share of GDP is expected to grow to 57% within the next 12 months, the
press release added.
The economic confidence indicator resumed its upward trend in February
after two consecutive months of decline. However, only the services
sector recovered, while other sectors, such as industry, continued to
decrease. The confidence indicator points to a contraction or at best
stagnation of gross domestic product in the first quarter of this year
compared to the last quarter of 2022, some analysts believe. The
Economic Confidence Indicator (ESI) grew to 101.7 points in February,
from 100.6 points in January, but remains below December’s 102-point
level and below the post-pandemic peak of 105.2 points reached in
Managers expect a sharp increase in prices in retail trade until April,
as well as relative stability in constructions, retail trade and
services, as well as in the number of employees in all activity
sectors, according to data published by the National Institute of
Statistics (INS) on Tuesday. According to February 2023 estimates,
demand for services (turnover) will remain relatively stable over the
next three months (cyclical balance +4%).
The annual decline of global trade volume accelerated in December 2022,
to 3%, the highest rate in two and a half years, from 1% in the
previous month, according to the latest World Trade Monitor report
drawn up by the Dutch institute CPB. The negative annual dynamics was
driven by three consecutive monthly declines, bringing the quarterly
decline to 2.1%, following a 1.3% increase in Q3/2022. Global imports
accelerated their annual decline to 3.1%, from 0.9%, amid a 0.6%
monthly decrease, and exports fell at an annual rate of 2.8%, following
a 1.1% decline, amid a further 1.2% monthly fall.
Romanians can invest in TEZAUR government securities with one-, two-
and three-year maturities and annual interest rates of 7.20%, 7.50% and
8% respectively as of Wednesday, 1 March. The government bonds have a
nominal value of RON 1 and are available in dematerialized form.
Moreover, the income obtained from investing in the savings offer
launched by the Ministry of Finance is not taxable.
Raiffeisen Bank, one of the biggest bank in Romania, listed a RON 369
million bonds issue on Bucharest Stock Exchange (BSE) on 28 February,
below the minimum own funds and eligible liabilities criteria, BSE has
indicated. The issue has five-year maturity and an interest rate of
8.817% per year. The bonds were sold to qualified investors with a
nominal value of RON 525,000. Such instruments, the same as those
issued by other banks such as CEC, BCR, are not extensively traded on
BSE and usually remain in investors’ portfolios until maturity.
Austrian group Erste, owner of BCR, ended 2022 with a EUR 5.95 billion
net interest income, up by 19.6% year-on-year, while its net profit
attributable to owners of the parent-company rose 12.5%, to EUR 2.16
billion, according to the financial report published on the
institution’s website on Tuesday. On 31 December 2022, the group’s
total assets stood at EUR 323.8 billion, up 5.3% year-on-year.
Banca Comercială Română (BCR), controlled by the Austrian Erste Group,
recorded a RON 1.74 billion (EUR 354 million) net profit in 2022, up by
23.8% against the RON 1.4 billion (EUR 286.5 million) result reported
for 2021, thanks to an improved operational performance, supported by
continued lending growth. In parallel, the operating result improved by
29%, to RON 2.73 billion (EUR 554.7 million), from RON 2.12 billion
(EUR 430.8 million) in 2021, amid higher operating income, partly
offset by higher operating expenses, according to the bank’s financial
The National Company for Road Infrastructure Administration (CNAIR)’s
investments budget has been almost RON 40 billion in the past ten
years, of which RON 8.4 billion was spent in 2022 alone, a record year
for investments in road construction and maintenance. However, the
average number of kilometres of highway inaugurated in the same period
was only 30 km/year, while a large part of the road company’s
investments must go towards the rehabilitation or maintenance of the
TeraSteel, part of the Irish Kingspan group, wants to expand with a new
plant near Bucharest, with construction works due to start in the
coming months. The company will thus enter the market with a surplus of
about 1.8 million square metres of sandwich panels, which it will sell
not only in Romania but also for export. The plant will be finalized in
the second or third quarter of 2024. The new plant will join the two
units TeraSteel already owns in Bistrita and the one it opened in 2017
in Leskovac, Serbia.
Opus Land Development is to invest around EUR 50 million in 2023 for
the construction of about 500 new residences in Cosmopolis complex,
according to a press release. Total investments in Cosmopolis will thus
exceed EUR 400 million. This is one of the biggest investments in a
real estate project in Romania, regardless of the market segment or the
area. According to the cited source, the around EUR 50 million
investment budgeted for this year in the development of Cosmopolis is
the biggest annual investment made by Opus Land since construction
works started on the project in 2007.
The Chamber of Deputies has adopted, as a decision-making body, a draft
law co-initiated by Save Romania Union (USR) MP Diana Buzoianu, which
will allow foreigners who come to Romania for a longer period of time
and work remotely for a non-EU company to benefit from tax facilities.
The law will be sent to promulgation. The draft law aims to encourage
specific activities carried out by digital nomads in Romania by
establishing the applicable tax regime, namely exemption from income
tax, social security contributions and health insurance contributions.
On Tuesday, the Chamber of Deputies adopted a draft law providing for
the establishment of the National Agency for the Development of
Healthcare Infrastructure (ANDIS) as a specialized body of the central
public administration. The law will be sent to promulgation. ANDIS’s
role is to develop the healthcare infrastructure by preparing,
implementing and completing investment projects of considerable
importance in healthcare infrastructure.
Deputies have adopted, as a decision-making body, a draft law amending
Law 487/2002 on mental health and protection of people with mental
disorders and establishing the "Postpartum Depression Awareness Week"
Program, which will be marked every year one week before 1 October -
the European Depression Day. The normative act will be sent for
The Chamber of Deputies has adopted, as a decision-making body, a draft
law amending an article of Law 273/2004 regarding the adoption
procedure, by extending the duration of the accommodation leave from
maximum one year to maximum two years, which includes the child’s
placement for adoption, as well as a monthly allowance. The normative
act will be sent to promulgation.
The European Commission will present "targeted" proposals by mid-March
to overhaul the EU’s electricity market, the bloc’s energy chief said
on Monday (27 February), adding that the reform will focus on long-term
power contracts for industry to mitigate price volatility. The EU’s
electricity market "has not been able to protect consumers from the gas
market crisis", which fueled a surge in power prices over the past two
years, said EU Energy Commissioner Kadri Simson.
Around 70% of women who live with their partner say they are also
responsible for most household chores, such as preparing meals, washing
dishes, washing and ironing clothes, as well as preparing children for
various activities, according to a survey conducted by a BestJobs
platform. For a third of women, "housework" takes up more than four
hours, the equivalent of a part-time job.
Unemployment rate at national level reached 3.09% in January 2023, up
by 0.04% compared to the last month of 2022, according to data
published by the National Employment Agency (ANOFM). The total number
of unemployed recorded in the aforementioned period was 242,063 people,
up by 2,999 against the end of the previous month.