News

Daily Newsletter - 13 June 2018

Summary

Macroeconomic News (4)

Processing sector reported 27.1% increase in orders

Processing sector companies reported a 27.1% increase in orders for April, compared to the corresponding month of 2017. The main growth drive was the high demand from capital goods companies, according to the National Statistics Institute (INS).

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Goods exports up 9.7% in four months

Romania exported goods worth EUR 22.2 billion in the first four months of this year, up 9.7% compared to the corresponding period of 2017, according to the National Statistics Institute (INS). At the same time, goods imports amounted to EUR 25.9 billion, up 10% year-on-year.

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Industry grew 3.6% in April

The industrial sector, which accounts for almost a quarter of the national economy, reported a 3.6% output increase in April, compared to the corresponding month of 2017, according to the National Statistics Institute (INS).

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Annual inflation rate reached 5.41% in May

The inflation rate was 0.47% in May, 2018, compared to the 0.28% logged in May, 2017. The annualized inflation rate surged to 5.41%. 85% of price increases focused on fresh and canned vegetables (5.78%), fuel (1.72%) and tobacco (1.25%).

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Financial News (2)

IMF targets Prima Casa program

The efficacy of macroprudential instruments targeting mortgages is undermined by the Prima Casa program, which offers loans with an LTV of up to 95%, according to a report issued by the International Monetary Fund. The banks' exposure to real estate soared from 21% to 54% between 2008 and 2017.

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IMF describes four vulnerabilities of Romanian financial sector

The banks' exposure to government debt and guarantees, the high percentage of real estate loans, the growth of NPLs and the lending practices of NBFIs are the main vulnerabilities of the Romanian financial sector, according to the report drafted by the International Monetary Fund's experts.

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Investment News (1)

CGI opens consulting and development center

Canadian company CGI announced the opening of its first software consulting and development center in Romania. The center will be located in Bucharest and it will employ 300 experts in the next three years, focusing exclusively on CGI's French clients.

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Legislative News (1)

City halls could find themselves hard pressed

As their budgets are about to implode because of the recent pay rises, the city halls may also have to come up with social assistance funds, according to a draft bill posted by the Ministry of Labor on its website.

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Politics (2)

President Klaus Iohannis: How can a politician, who is also a convicted criminal, threaten prosecutors?

President Klaus Iohannis stated on Tuesday that he had yet to make a decision regarding the sacking of DNA's chief-prosecutor because he is still analyzing the Constitutional Court's ruling.

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PSD: CCR rulings must be obeyed

The Social Democratic Party (PSD) announced that President Iohannis had made "irresponsible" statements that undermine the authority of the Constitutional Court.

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Social (1)

Demographic decline continues!

The population of Romania continues to shrink. 8,910 residents were lost in April, up 32.8% year-on-year.

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