News

Daily Newsletter - 16 August 2019

Summary

Macroeconomic News (5)

Economic growth stays high, analysts warn of vulnerability to foreign shocks

The dynamics of the Romanian economy slowed down in the second quarter, but the growth rate continued high, especially for the European Union. However, it's precisely the European and international situation that raises questions over what's to come, especially since the German economy is already stagnating, which translated into a drop in Romanian manufacturing.

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INS reports 4.4% GDP growth

The GDP increased by 4.4% in the second quarter of this year, compared to the corresponding period of 2018. According to the National Statistics Institute (INS), the economy expanded 1% compared to the previous quarter. The figures among the highest in Europe and confirm the stabilization of economic growth relatively close to the estimates used to make this year's state budget.

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Ministries of agriculture announce cooperation

The Ministry of Agriculture and Rural Development (MADR) has teamed up with Moldova's Ministry of Agriculture, Regional Development and Environment (MADRM), as well as private sector companies, associations and academia figures to work on developing the food sector, according to a press release. MADR said the problems facing Romania and the Republic of Moldova are similar.

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Industrial production down 0.6% in six months

The industrial production dropped 0.6% in the first six months of this year, 0.4% in seasonally-adjusted figures, according to data released by the National Statistics Institute (INS) on Wednesday.

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Budget revision published in Official Gazette

The decree featuring the state budget revision was published in the Official Monitor on Wednesday. The budget increased by RON 2.26 billion, with expenses growing slightly more than RON 1 billion. The deficit dropped RON 1.96 billion.

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Financial News (2)

Banca Transilvania logs RON 942.36 million in earnings

Financial group Banca Transilvania, which includes the biggest bank in the country, logged RON 942.36 million in earnings for the first half of this year, up 9% year-on-year. The group's net revenue from interest surged 18.6% in the first half of the year, reaching RON 1.51 billion, while assets grew 4.7%.

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BNR attracted another RON 5 billion from banks

The National Bank of Romania (BNR) took RON 4.89 billion off the inter-bank market on August 12, through 7-day deposits at 2.5%. This is the second liquidity draining operation this month.

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Investment News (1)

Ministry of Transport to invest RON 102 million in Medgidia port

The Ministry of Transport has drafted a decision approving the technical and economic indicators for the Medgidia Port Modernization and Operating Capacity Expansion project. According to the document, the project will cost RON 102.3 million.

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Legislative News (1)

Government expects RON 75-150 million in tip taxes

The Ministry of Finance (MFP) has included the taxation of tips in a draft decree amending Act 28/1999 regarding the use of fiscal cash registers. Based on the Ministry's estimates, the government expects to get between RON 75 million and RON 150 million in additional annual revenue by taxing tips.

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Politics (2)

Political chaos

The Dancila Cabinet was rocked by infighting in the PSD-ALDE coalition, but the opposition parties seem to be weakening, as their leaders dodge the possibility of taking charge of the government even as they demand the current cabinet be sacked.

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President Iohannis attended Navy Day

President Klaus Iohannis was in Constanta on Thursday to attended the Romanian Navy Day events.

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Social (1)

Romania to receive migrants

Six EU member states voiced their willingness to receive part of the 147 migrants currently on board of a ship belonging to Proactiva Open Arms. The ship has been off the Lampedusa coast since Thursday, according to Italian Prime Minister Giuseppe Conte. The six states are France, Germany, Romania, Portugal, Spain and Luxembourg.

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