News

Daily Newsletter - 11 November 2020

Summary

Macroeconomic News (4)

EBRD: Romanian economy to contract 5% in 2020

The European Bank for Reconstruction and Development expects the Romanian economy to shrink by 5% in 2020, followed by a slow recovery, featuring a growth rate of only 3% in 2021. However, EBRD economists point out that the economic situation is very fluid and may be influenced by a number of factors, such as the resumption of structural reforms and the economic recovery of Romania's main trading partners.

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Budget revenues 10% below target

The government is preparing this month's budget revision from a relatively stable position, according to data for the first nine months of the year. Revenues were below target, representing 90% of what the Cabinet had planned, but spending was also kept under control. The budget deficit stood at 67.3% for the period January-September, compared to the RON 77.1 billion stipulated by the budget bill.

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Average salary up 1.4% in September

The average net salary was RON 3,321 in September, up RON 46 (1.4%) from the previous month, while the average gross salary was RON 5,414, up RON 77 (1.4%), according to data released by the National Statistics Institute (INS). The hotel and restaurant industry continued to report the lowest average salary (RON 1,753).

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Digital advertising market to exceed EUR 80 million

Romania's digital advertising market will exceed EUR 80 million this year, up more than 45% from the previous year, according to a Kiklab study based on IAB data. The study indicates that demand for online stores and digital marketing exploded in the second half of this year, soaring more than 60% year-on-year.

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Financial News (3)

Chamber of Deputies passes bill exonerating S&L clients

The Chamber of Deputies passed on Tuesday a bill exonerating the clients of the former savings&loans banks from reimbursing the amounts representing state bonuses. Clients were exposed to this financial risk by the Court of Accounts' decision regarding the S&L system.

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MFP and banks looking for ways to help debtors

"I am working, together with the banking system, for that measure that postponed payments for two months. We will see what solutions we can come up with, what shape it will take. I say we must have confidence that, just as we found a solution in the midst of a crisis, we will continue to find good solutions. We must think we're aiming for economic recovery. There will be a recovery and we will start to leave the crisis behind," said the Minister of Finance, Florin Citu.

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Raiffeisen Bank launched new current account package

Raiffeisen Bank has launched Zero Simplu, a new current account package featuring zero account and card fees, mobile banking access, a savings account, and no fees on cash withdrawals from any ATM operated by a local bank.

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Investment News (2)

RON 1.6 billion rehabilitation contract

The Mayor of Bucharest, Nicusor Dan, and the Minister of European Funds, Marcel Bolos, signed a RON 1.6 billion contract that would finance the rehabilitation of 210 kilometers of heating pipes in the cities, the equivalent of 22% of the entire heating network. Most of the funds are grants.

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E.ON announces massive investment in Romania

E.ON Romania is implementing between 2020 and 2023 an investment plan worth EUR 375 million. The plan focuses on modernizing and expanding the local natural gas and power networks, according to Andreea Ionita, Deputy CEO of E.ON Romania.

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Politics (2)

Finance Minister blasts PSD platform

Florin Citu, the Minister of Finance, called the Social Democrat (PSD) platform a "program to impoverish Romanians".

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President says current majority lost legitimacy

President Klaus Iohannis stated on Tuesday that the current parliament, dominated by the Social Democrats, has lost all legitimacy and that holding the parliament election as scheduled is the only way to elect a new one, that would result in a strong government, formed by the National Liberals.

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Social (1)

18,036 children born in September

The number of children born in September was 18,036, up 1,232 compared to August, while the number of deaths was 21,973, down 1,196 from August. Individuals above the age of 70 accounted for almost two thirds of all deaths.

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