News

Daily Newsletter - 10 December 2018

Summary

Macroeconomic News (4)

Inflation expected to fall

The National Statistics Institute (INS) will release the November inflation report this week. In all likelihood, the inflation rate is expected to be negative, which will bring the annual rate within the BNR target range of 2.5% +/-1 pp ahead of the initial estimates. ING Bank economists expect a 0.7% drop in inflation, leading to an annual rate of 3.6%.

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GDP up 4.2% in nine months

The economy grew 4.2% in the first three quarters of this year, according to the preliminary data from the National Statistics Institute (INS). Aside from the failure to meet the 5.5% estimated growth rate, one should also notice a slight slowdown in the third quarter of the year.

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Inflation eroded salary increase

The government approved the decision to increase gross minimum wage from RON 1,900 to RON 2,080, as of January 1, 2018. At the same time, the government decided to increase the minimum salary for employees occupying positions requiring higher education and who have at least one year of experience. On the other hand, consumer prices have been rising swiftly, following the upward trend of fuel excises and the growing state payroll.

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Romania posted second highest economic growth rate in EU

The Gross Domestic Product of the eurozone grew by 0.2% in the third quarter of this year, while the EU GDP jumped 0.3%, compared to the second quarter. The strongest growth rates were reported by Malta (3.6%) and Romania (1.9%), according to preliminary data published today by Eurostat. Compared with the third quarter of last year, the GDP grew by 1.6% in the eurozone and by 1.8% in the EU.

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Financial News (1)

Raiffeisen Bank issued more than 500,000 credit cards

Raiffeisen Bank's portfolio features more than 500,000 shopping cards, with the bank claiming the largest credit card portfolio of any local bank. The continuous improvement of the features and services offered, the expanding network of partner retailers, coupled with a favorable macroeconomic situation led to a 10% increase in the number of newly issued credit cards in the last year.

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Investment News (1)

MCIN gets RON 2 million for cultural projects

The Cabinet approved a RON 2 million increase in the Ministry of Culture's budget in order to finance certain cultural projects related to Romania's assumption of the EU Council presidency. The funds came from the Government's Reserve Fund.

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Legislative News (1)

Official list of decrees

The Government approved on Friday the draft bill regarding the power to issue decrees during the parliamentary recess. Among the attributions listed in the bill is the desire to delay or change the deadlines stipulated in certain laws.

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Politics (2)

President Iohannis waits for CCR ruling

President Klaus Iohannis voiced on Friday his dissatisfaction with the government's move to take the reshuffling dispute to the CCR. The President said the prime minister "does not understand how the state works". The President did not take any decision regarding the Development and Transport portfolios and instead attacked the prime minister and the president of the Social Democratic Party (PSD).

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PSD complains of President's actions

The PSD released a communique yesterday condemning "President Iohannis's irresponsible decision to block the operation of two key ministries" and announced that it would use all legal and constitutional means to address the problem and to force President Iohannis to respect the laws and the Constitution of Romania.

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Social (1)

Bucharest City Hall to make public transport free for students

The Bucharest City Hall wants to make public transport free for students. The measure is aimed at primary, secondary and high school students who are enrolled in the city's education institutions, according to a draft decision placed on the agenda a Wednesday's meeting of the City Council (CGMB).

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