News

Daily Newsletter - 14 January 2019

Summary

Macroeconomic News (3)

70% of Q1-Q3 economic growth came from stocks

The National Statistics Institute (INS) recalculated the GDP for the third quarter of 2018 and for the first three quarters of last year. These are the latest estimates for the Romanian economy updated to date in the provisional version 2, with the observation that the initial growth rate (from 4.3% to 4.4% in gross series and from 4.1% to 4.2% in seasonally adjusted figures) suffered a very slight modification.

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INS revises economic growth estimate

The National Statistics Institute (INS) revised upwards the economic growth rate for the third quarter of last year from 4.3% to 4.4%, compared to the corresponding period of 2017. In December, 2018, the INS confirmed the estimates published in mid-November, 2018, featuring a 4.3% increase of the Romanian economy in the third quarter of last year compared to the corresponding quarter of 2017.

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Teodorovici: Budget will be ready in time

Finance Minister Eugen Teodorovici said on Saturday, during a phone interview with Antena 3, that the Parliament will find the draft budget for this year waiting when the MPs return from the winter recess. The National Liberal Party (PNL) had called for an emergency session to be held next week to pass the budget.

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Financial News (3)

Adrian Vasilescu (BNR): The banks invested EUR 4 billion in Romania

The shareholders of foreign banks brought EUR 4 billion to Romania during the financial crisis to strengthen their local subsidiaries. However, they may not do so again today and, if the banks suffer a downturn, the entire national economy of the country would follow, according to Adrian Vasilescu, a strategy adviser with the National Bank of Romania (BNR).

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The national currency in 2019

The estimates put forward by economists working for the biggest local banks regarding the depreciation of the national currency this year range from RON 4.73 to RON 4.77 lei per euro. The recent depreciation is the effect of uncertainties regarding the soundness of the state budget in 2019, amid macroeconomic imbalances accumulated in the last period, according to the analysts of the big banks in Romania.

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BT: "The financial performance of banks will deteriorate significantly"

Banca Transylvania analysts are warning about the likelihood of a severe deterioration of financial performance in the banking sector, as a result of measures announced at the end of last year, coupled with the budget consolidation outlook. Economists believe that the additional taxes could lead to consolidation opportunities, higher investment in digitization (especially as the internal market has high potential) and business model restructuring.

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Investment News (1)

Dolj CC signs DJ 652A modernization deal

The Dolj County Council has signed a contract with Erpia and Conmetal for the modernization of County Road (DJ) 652A. The contract is worth around EUR 3.5 million, VAT included. County Council President Ion Prioteasa boasted saving EUR 700,000 by signing this contract.

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Legislative News (1)

MAI moves against drivers who use phones

The Ministry of Internal Affairs (MAI) has released for public debate a draft bill amending driving regulations. The MAI wants to stop drivers from holding phones or tablets in their hands while driving. Drivers caught holding any mobile device featuring text, video or photo recording and display functions will have their licenses suspended.

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Politics (2)

Ion Iliescu: The EU cannot be the scapegoat for our failures

Former president Ion Iliescu wrote on his personal blog on Sunday an analysis regarding the European Parliament elections and Romania's takeover of the revolving presidency of the EU Council. According to the former president, the dignity of occupying a seat in the European Parliament "is not, it cannot be a reward for some politicians or their clients, but the peak of exemplary political careers."

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Ludovic Orban: PSD-ALDE consensus is anti-European

PNL leader Ludovic Orban said the National Liberals cannot endorse the political consensus proposed by the PSD and ALDE for the six-month presidency of the EU Council. Orban called the consensus "anti-European", "against European values".

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Social (2)

Romanians at bottom of recreational and culture spending index

Romanians allocate less than 6% of total spending for recreational and cultural activities, occupying the last but one spot in the European index, according to the EU statistical bureau Eurostat. In 2017, only 5.8% of the total consumption spending of Romanians went to such activities, slightly below the 2016 percentage, of 6%. At the EU level, consumer spending for recreation and culture in 2017 was over EUR 710 billion, 8.5% of the total household income.

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State lends a helping hand

Young people between the ages of 18 and 35 may request from the state free land to build their first homes, according to the legislation in force. In order to get free land, young people have to meet certain conditions and also have to build the houses in question within one year from the date of the grant, according to Law 15/2003, republished in 2014.

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