News

Daily Newsletter - 20 January 2021

Summary

Macroeconomic News (4)

World Bank confirms Romania's pandemic response

Prime Minister Florin Citu stated that the World Bank had analyzed over 3,000 financial measures taken by 154 countries in the context of the pandemic. The analysis showed that Romania, along with the USA, Germany, France and Australia, had the highest level of activity for measures taken in response to the crisis caused by COVID-19.

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CNSP estimates 4.3% increase in GDP

The National Strategy and Forecast Commission (CNSP) estimates a 4.3% increase of the Gross Domestic Product in 2021, up to RON 1,116.8 billion, compared to the 4.5% and RON 1,135.3 billion estimated by the Autumn Forecast. CNSP also estimates an increase in private consumption of 3.7% (compared to 4.6% previously) and a trade deficit of EUR 21.4 billion.

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Industrial and logistic space developers delivered 600,000 sqm of new space

Last year, the developers of industrial and logistics spaces completed new projects amounting to approximately 600,000 square meters, thus maintaining the investment plans announced at the beginning of the year, despite the COVID-19 crisis. It is noteworthy that the developers did not suspend or slow down the pace of construction, even if this decision required the adoption of higher security measures at construction sites. The dynamics of new development was supported by a record demand of 670,000 square meters, up 15% from 2019.

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Construction sector still going strong

In November, Romania reported an annual growth rate of 9.3% for construction works, the second largest in the European Union, according to Eurostat data. However, the annual growth rate has down 50% compared to October.

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Financial News (2)

CEC Bank launched new Smart account

CEC Bank has launched the new Smart current account package, featuring zero fees and a card bearing an interest rate of 0.3% per year, the bank announced on Tuesday. Clients can thus benefit from interest rates similar to those offered by savings accounts. The Smart package offers free access to Mobile Banking, Internet Banking, as well as SMS Info alerts for card transactions.

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BNR could slash key rate again

The National Bank of Romania (BNR) could reduce the key rate by another 25 base points, down to a new all-time low of 1% per year, according to Erste group analysts. The analysts say that such a move would be possible as soon as the first quarter of 2021.

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Investment News (2)

Feasibility study of Timisoara's West Beltway to be launched

CNAIR announced that it had launched the procedure for contracting the feasibility study required to build the western section of the Timisoara Beltway. The contract is worth RON 3.6 million.

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Piatra-Neamt authorities invest in smart lighting

The Piatra-Neamt City Hall started implementing a project that would see the city turn its public lighting system into a smart one. The project will receive more than EUR 2 million worth of EU funds and one of its goals is to slash electricity consumption by at least 40%.

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Legislative News (1)

Cabinet working on insurance decree

Drivers will soon be able to receive compensation for damages directly from the insurance company where they concluded their own MTPL policy. The Cabinet is preparing a decree to this effect, at the request of the Financial Supervisory Authority (ASF). This procedure, called direct settlement, already exists, but was optional. However, the change in legislation will make it mandatory for the entire market.

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Politics (2)

Citu: PNL has always been a dynamic party

Prime Minister Florin Citu said the National Liberal Party (PNL) has always been dynamic. "Let's talk about the party at the party headquarters. This is the government seat and we'll talk about the government," said Citu when asked to comment about the recent frictions inside the party.

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Orban lays down the law

Ludovic Orban answered his challengers yesterday by saying that he is and will remain the president of the National Liberal Party (PNL) until the upcoming congress. Senior VP Rares Bogdan and Secretary General Robert Sighiartau have urged Orban to step down and allow a reform movement to take over.

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Social (1)

Stage 2 expanded to include new employee categories

The Cabinet will adopt a decision that will expand the second phase of the vaccination campaign to new social and professional categories. The document prepared by the Ministry of Health mentions, among these new categories, people with disabilities, the homeless, key staff of the Parliament, the Constitutional Court, the People's Advocate, the President's Office etc.

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