News

Daily Newsletter - 12 February 2020

Summary

Macroeconomic News (4)

Net average salary up 13% in December

The net average salary was RON 3,340 in December, 2019, up 13% compared to the corresponding month of 2018. The month-on-month growth rate was 5.1%, according to the National Statistics Institute (INS). The highest gains were reported by IT workers, who are paid an average of RON 7,689.

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Mihai Ionescu: "Exports no longer economy drive"

Exports have stopped driving the economy forward, with 2019 being the first year when exports grew faster than the GDP, according to Mihai Ionescu, President of the National Exporter and Importer Association of Romania (ANEIR). The trade deficit jumped more than EUR 2.16 billion, passing EUR 17.28 billion, according to the National Statistics Institute (INS).

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22% drop in number of mothballed companies

The number of companies that suspended their activity in 2019 decreased by 22.16% compared to 2018, reaching a total of 14,040, according to data published by the National Office of the Trade Registry (ONRC). Most companies that suspended their activity in 2019 were from Bucharest (1,398), down 26.3% compared to the previous year.

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Romanian was EU's seventh biggest vegetables producer in 2018

Romanian was EU's seventh biggest vegetables producer in 2018, with a total output of 191,000 tons. However, the production figure was down 110,000 tons from the record year 2017.

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Financial News (4)

CEC Bank and EximBank charters could be adjusted

The charters of CEC Bank and EximBank could be adjusted in order to implement dual leadership systems, thus separating the executive leadership from the board, according to the new cabinet program filed with the Parliament by the National Liberal Party (BNR).

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Forex market posts EUR 1.64 billion daily average for 2019

The foreign exchange market picked up in 2019, reporting a daily trade average of EUR 1.64 billion, up 6.4% compared to the previous year, according to the National Bank of Romania (BNR). This is the highest figure in seven years.

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BNR Governor worried about twin deficits

The National Bank of Romania (BNR) is worried about the budget and trade deficits, as well as securing financing sources, according to Governor Isarescu. "The central bank cannot correct every fiscal or revenue policy slide," said Isarescu.

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Zamfir bills criticized by KPMG study

The four bills targeting the lenders' behavior, introduced by Senator Daniel Zamfir and several PSD MPs, could bring direct benefits to certain consumers, but would have negative effects on the economy as a whole, by reducing access to loans for the population, increasing the cost of borrowing and depressing consumption and investment, shows a study conducted by consulting firm KPMG and commissioned by the Romanian Banking Association (ARB).

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Legislative News (1)

Food vouchers could increase in value

The maximum nominal value of food vouchers could be increased from RON 15.18 to RON 20, according to a bill passed by the Chamber on Tuesday. The bill, which removes the previous value cap, is now on its way to President Klaus Iohannis.

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Politics (1)

Vote on new cabinet scheduled for February 24

The Standing Bureaus of the Chamber and the Senate decided yesterday the schedule for dealing with the next cabinet. The individuals nominated for cabinet positions will appear before the commissions between February 17-19, while the floor vote on the cabinet will be held on February 24.

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Social (2)

Romania's young people reach only 60% of their productivity potential

Romania's young people reach only 60% of their productivity potential at the age of 18, based on the current state of the country's education and healthcare systems, according to an analysis released by the World Bank on Tuesday. This is the lowest rate in the European Union for the Human Capital Index.

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Emergency call system reported 11.3 million calls in 2019

The Special Telecommunication System, the organization which manages the national emergency call system (SNUAU), reported more than 11.3 million emergency calls for 2019, with more than 51% of them being actual emergencies. 16 years after the service was launched, STS is implementing the Advanced Mobile Location technology for callers.

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