News

Daily Newsletter - 12 March 2020

Summary

FIC (1)

Press announcement

The first meeting of the Inter-institutional Working Group to assess the economic, financial and budget impact of the effects of the Covid-19 epidemic (GLI-ECOROM), was held yesterday, starting at 4 PM, at the Victoria Palace. The list of guests included representatives of CDR, CCIR, ANEIR, CNIPMMR and ARB.

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Macroeconomic News (5)

Trade deficit grew in early 2020

The trade deficit worsened at the beginning of 2020 because of an unexpected surge in consumption. Exports jumped 3.3% to EUR 5.7 billion in January, while imports increased by 3.4% to EUR 7 billion. The trade deficit reached EUR 1.32 billion, 3.9% higher compared to the first month of 2019.

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Unprecedented test

The COVID-19 epidemic represents an unprecedented test for the Romanian economy, which is largely unprepared for such a situation, according to the results of a survey conducted by consulting firm Frames and commissioned by FACTORY 4.0 conference. Beyond the fact that the epidemic has led to the closing of many Chinese factories, the spread of coronavirus in Europe, in countries such as Italy, one of our main trading partners, is likely to generate significant bottlenecks along the economic chain.

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SMEs could benefit from deferrals

The Minister of Finance, Florin Citu, discussed with the representatives of the SMEs the possibility of postponing by up to 2 months the payment of social and health insurance contributions. The amending of the Tax Code could be made by the Parliament. The proposal was brought up at the meeting of the Inter-institutional Working Group to assess the economic, financial and budgetary impact on Romania of the coronavirus epidemic.

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Annual inflation rate down

The annual rate of inflation dropped to 3.05% in February of this year, down from 3.6% in January. Food prices increased by 4.9%, services were up 3.84%, and non-food goods gained 2.04%, according to data published by the National Statistics Institute (INS) Wednesday. Consumer prices rose by 0.25% in February, compared to January.

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Consumption recovery was key to growth

The key to the health growth of the national economy (4.1% in 2019) was the fourth quarter of last year, when the real GDP growth rate of 4.3% proved to be far above what economists had anticipated. Investment also made a significant contribution to growth, surging almost 18% in 2019.

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Financial News (1)

BCR reports 33 million clients, 6,766 employees

BCR reached 33 million customers, 6,766 employees and 430 branch offices at the end of last year, being the third biggest subsidiary of Austrian financial group Erste. In 2018, BCR had 3.1 million customers, 7,237 employees and 509 branch offices.

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Legislative News (1)

Cabinet could bear part of parent burden

Deputies postponed Tuesday the approval of a bill stipulating that parents will benefit from days off in order to supervise their children, if schools and kindergartens are closed due to adverse weather conditions or other extreme situations. The Minister of Labor, Violeta Alexandru, indicated that the Cabinet will submit proposals to the Parliament to provide financial help to employers if the parents stay home for extended periods of time.

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Politics (1)

Chamber of Deputies disinfected

The Chamber of Deputies' Permanent Bureau room and plenary meeting hall, as well as al adjacent spaces, will be disinfected on Thursday, ahead of the joint meeting.

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Social (1)

WHO declares pandemic

The coronavirus epidemic was upgraded to a pandemic, according to the official announcement made by Tedros Adhanom Ghebreyesus, head of the World Health Organization, on Wednesday.

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