The trade balance deficit (FOB/CIF) stood at EUR 10.013 billion in the
first four months of 2022, up by EUR 2.938 billion year-on-year,
according to data from the National Institute of Statistics (INS). In
April 2022, FOB exports totalled EUR 6.886 billion and CIF imports
amounted to EUR 9.711 billion, resulting in a EUR 2.824 billion
deficit. Exports grew by 10.4% and imports were up 21.8% in April 2022,
compared to April 2021.
Austrian group Erste, owner of BCR, has considerably increased its
economic growth forecast for Romania in 2022, estimating 5.1% GDP
growth in 2022, compared to 2.8%, as projected by the institution’s
analysts in a report presented at the end of April. The change comes as
the National Institute of Statistics (INS) confirmed on Wednesday that
Romania’s economy had grown by 6.5% y/y in Q1/2022, with trade and
services having accounted for most of the advance in the first three
months of the year.
President Klaus Iohannis stated on Thursday, 9 June that the policies
based on consumption and budget deficits, practised before the pandemic
and the economic crisis, had pushed Romania away from strategic country
objectives, such as accession to euro area, and were currently making
the fight against inflation more difficult. He pointed out that
changing the development model meant turning investments into the zero
priority. In this regard, he said that the budget allocation of nearly
7% of GDP for investments must be maintained.
On Thursday, Prime Minister Nicolae Ciucă received the International
Monetary Fund delegation, who has come to Romania for its annual
evaluation mission, at Victoria Palace. Prime Minister Nicolae Ciucă
appreciated the positive assessments of the International Monetary Fund
mission, as well as the guidance given at fiscal policy level in order
to reduce deficits and ensure healthy economic growth, in the difficult
context generated at European and international level by the effects of
the recent crises.
BRD-SocGen has increased the interest rates applicable to household
deposits, which can even reach 6% in the case of the "Progresso"
one-year deposit with a progressive interest rate. The interest rate
for the first six months of the "Progresso" deposit is thus 3.3%, and
reaches 6% for the next six months, i.e. after 1 year. Moreover, the
bank has indicated that interest rates for standard RON-denominated
term deposits have been increased for all maturities. As a result, the
interest rate for standard three-month retail deposits is 3%, the one
for six-month deposits has grown to 3.5%, the interest for the one-year
maturity is 4.10%, and the one for the two-year maturity has reached
Grawe Romania, the local subsidiary of the Austrian insurance group
Grawe, has increased its share capital by RON 19.4 million, to RON
120.4 million. The funds will be used for the underwriting activity on
the general insurance segment. The company had previously performed
another RON 30 million capital increase. Underwritten general and life
insurance premiums totalled RON 293.66 million in 2021, up from RON
184.43 million in 2020, according to company data.
Banca Comercială Română, one of the most constant issuers on Bucharest
Stock Exchange (BSE)’s bonds segment, is selling a new corporate bonds
issue, thus bringing the issuer’s stock of such instruments to RON 3.7
billion. The new issue has been placed with ten qualified investors and
will become available for trading on the secondary market from BSE as
well. The nominal value is RON 100.
CTP, the biggest owner and developer of logistics and industrial spaces
in Continental Europe, has started construction works on CTPark Oradea
Cargo Terminal, the first industrial park with a cargo terminal in
Romania, located close to Oradea Airport and to Eurobusiness II
industrial park. The first stage of the project consisted in building
the connection between the aircraft taxiway and the aircraft parking
platform. The project will be finalized in 2023.
Theta Furniture&More, one of the main players on the market of
interior design and custom-made furniture, invested EUR 4 million in
its own 5,000 square meter plant, located in Păulești Commune, Prahova
County. The company’s production had previously been located in Prahova
as well, in Blejoi, in a rented space. Since March this year,
production has moved to the new unit, and company officials plan to
employ about 12 people this year.
Lagardère Travel Retail has announced the expansion of the So!Coffee
network by five more cafés. The chain currently consists of 12 cafés,
located in airports, train stations, shopping centers and shopping
galleries in Bucharest-Ilfov, Cluj, Timisoara and Sibiu areas.
Customers in DN1 Value Center can thus enjoy an extended unit with an
indoor area plus a terrace. Moreover, So!Coffee is present in Timișoara
Shopping City with the first island format, and the space in Auchan
Drumul Taberei is in a compact form, based on the on-the-go philosophy.
EUR 300,000 was invested for the opening of the new units.
During the meeting on Thursday, 9 June, the Government discussed a
draft emergency ordinance on measures to ensure the continuity of the
EU sanctions regime imposed amid the Russian military aggression in
Ukraine, without prejudicing the activity of some companies in Romania.
The draft had been debated in a first reading during Wednesday’s
government meeting. On Thursday also, Ciucă Cabinet analyzed a draft
emergency ordinance on some measures for filling vacant and temporarily
vacant public positions with attributions in the implementation of the
National Recovery and Resilience Plan.
MP Cristian Ichim, from Save Romania Union (USR), has submitted a draft
law amending and adapting the legislation on driving schools’
functioning so that drivers can be better trained and more responsible
in traffic. The draft-law – whose co-initiators USR Senator Anca Dragu
and Liberal (PNL) MP Ioan Cupșa are - amends and completes Government
Emergency Ordinance 195/2002 on traffic on public roads and aims to
improve road safety.
During communism, the Romanian state was one of the world’s top
exporters of arms, with a 230,000-strong workforce. Today the public
sector employs just 10,000 people, its factories are in debt, and
stakeholders are uncertain about the future. At a time when Europe
needs to step up its defense, EU member Romania’s public sector arms
industry is desperately trying to regain ground. Meanwhile, the private
sector is thriving, leading former economy minister Claudiu Năsui to
suggest that a possible solution could be privatization.
One in two Romanian children spends up to six hours a week online,
according to a study. In Spain, Romania and Russia, the average time
spent in front of a screen is higher than in other countries. South
Korea is the country with the highest average of online learning
activities. The study targeted people with children aged 4-12, with
different levels of education, income and jobs.
Household spending on fast-moving consumer goods (FMCG) grew by 7% in
Romania in the first three months of 2022 compared to the same period
of last year, amid the accelerating rise in food prices, according to
GfK Consumer Panels & Services data. As a comparison, the increase
in the value of the FMCG market was 1.2% in 2021 compared to the
previous year. This is the second consecutive quarter when shoppers
have migrated towards products in the lower price segments (the
down-trade phenomenon), especially in non-food categories, in response
to the growing inflationary pressures.