News

Daily Newsletter - 23 November 2022

Summary

Macroeconomic (3)
Financial (3)
Investment (4)
Legislative (4)
European News (1)
Social (2)
Macroeconomic 
Csaba Balint expects 1.5%-2% GDP growth in 2023
Csaba Balint, a member of the National Bank of Romania (NBR)’s Board of Directors, has stated that he expects of 1.5%-2% GDP growth in 2023, pointing out that NBR does not make forecasts on the evolution of the GDP and that these figures reflect his personal opinion. He thus believes that the landscape is changing in local economy, despite the positive evolution in the first part of the year. In the first three quarters, the economic evolution generated a pleasant surprise, with 6% - 5% - 4% advances. However, a slowdown can be anticipated, Csaba Balint has indicated.
Romanian managers’ level of confidence has decreased in H2/2022
Romanian managers’ level of confidence has decreased to 44.4 in the second half of this year, close to the level recorded at the end of 2020, yet above the level of the similar period in 2021, according to the results of the CONFIDEX H2/2022 survey, published by Impetum Group, a press release indicates. According to the cited source, managers’ confidence has been influenced by inflation, by the rising energy and fuel prices, and by the growing costs of raw materials in H2/2022. As a result, 1 in 3 companies said they were affected by the rising energy prices, while 70% said they continued to be affected by the war in Ukraine. Furthermore, 43% of respondents within the CONFIDEX survey expect GDP to drop, private and public investments to decrease and the national currency to depreciate against the euro and especially against the US dollar over the next three months.
Economic growth will decelerate markedly in 2023 and witness only a slight revival in 2024
Economic activity will probably record higher-than-previously-foreseen dynamics in 2022, yet solely as a result of the above-expectations performance in H1. Economic growth would then decelerate markedly in 2023 and witness only a slight revival in 2024, according to the minutes of the monetary policy meeting of the National Bank of Romania's Board of Directors on 8 November 2022. The cited source also indicates that private consumption will probably remain the major driver of GDP advance, yet amid the significant slowdown in its growth during H2/2022 and especially in 2023, particularly amid the high inflation and labor market developments, as well as under the influence of the rise in lending and deposit rates for households.
Financial 
Groupama Asigurari continued to be the insurance market leader in the first 9 months of 2022
Groupama Asigurări, the leader of the insurance market since mid-2022, consolidated its leading position at the end of the first nine months of 2022, with a 17.94% market share, closely followed by Allianz-Tiriac with 17.67%, according to information transmitted by representatives of the Financial Supervisory Authority (ASF). As for the market of mandatory civil liability car insurance (RCA) policies, competition on this segment remained at the highest level of the past five years in Q3/2022 as well, according to data aggregated by ASF.
Insurance company Euroins’s market share fell to 31%
Insurance company Euroins has a market share of little over 31%, slightly lower than at the middle of the year. Euroins’s market share is more than 5% lower than the level recorded at the end of 2021, when the company controlled over 35% of the market, according to a press release. The gap between Euroins and its competitors narrowed in Q3/2022, as Groupama and Allianz Țiriac, the second and third biggest players on the RCA segment, maintained their market shares.
BCR celebrates four years since the creation of George platform
Banca Comercială Română marks four years since the launch of the first intelligent digital banking platform – George, according to a press release. The cited source indicates that George platform’s benchmark figures are the following: more than 1.6 million active users in 2022, up by 28% year-on-year; more than 127,000 enrolled companies and almost 3,500 trees saved following the digitalization of the most important products and processes that clients access on a daily basis in their interaction with BCR, which no longer involve the use of paper, thanks to George.
Investment 
Genesis Property installed over 1,000 photovoltaic panels on YUNITY Park office buildings
Real estate developer Genesis Property has finalized the largest renewable energy project in an office park in Romania, in the YUNITY Park (Novo Park) complex in the north of Bucharest, following a EUR 1 million investment. The project consisted of the installation of over 1,000 photovoltaic panels on an area of more than 4,000 square meters, within a prosumer regime, on the roofs of the office buildings.
AmonRa plans to invest EUR 2 million in a logistics center in Romania
AmonRa Energy, one of the biggest suppliers of solar roofing equipment in Bulgaria, which recently entered the Romanian market, plans to invest EUR 2 million in the construction of a logistics center in Romania. The company wants to raise capital through an initial public offering on the BEAM (Bulgarian Business Accelerator Market) of Sofia Stock Exchange, scheduled for 30 November. AmonRa is to offer up to 1.259 million new shares, representing 17.35% of its share capital, at a price of 12.40 leva (EUR 6.34) per share.
Diehl Controls to invest EUR 40 million in a research center and a production unit in Brasov
German company Diehl Controls, which manufactures components for electrical household appliances and for industrial use, is to invest EUR 40 million in a research center and a production unit in Brasov. The space will be developed by CTP, the largest developer and owner of logistics and industrial spaces on the local market, which has signed a lease agreement with Diehl Controls. The investment will be carried out in two stages. The first stage will include the development of the research center and of the production unit with a total area of 18,000 square meters, where EUR 15 million will be initially invested. Within the second stage, the investment will grow to EUR 40 million over the next ten years.
Zentiva has invested in an energy project
Zentiva group of companies in Romania has finalized a project for the production of electrical power through photovoltaic panels with an installed capacity of 200 kW, according to a press release. The system will ensure 10% of Labormed generic medicines plant’s energy consumption, and is an important step in the company’s sustainable development process. The cited source also indicates that the turnkey project, implemented by Electrica Furnizare, included 372 photovoltaic modules of 540Wp and was completed in three months, as undertaken.
Legislative 
Deputies have amended the Energy Ordinance
On Tuesday, Chamber of Deputies’ Industry and Economic Policy Committees adopted a favorable report on Government Emergency Ordinance 119/2022 on energy. The amendments submitted by the ruling coalition parties, including the setting of a maximum electricity price of RON 1.3/kWh for all consumers regardless of their consumption level were thus approved. There were 26 votes in favor, six votes against and the representatives of the Alliance for Romanians’ Unity (AUR) did not vote.
Draft law on probation personnel’s status has been finalized by the Ministry of Justice
The Ministry of Justice has announced that the draft law on the status of probation personnel was finalized and sent to the Economic and Social Council for approval. The draft normative act had been drawn up by the Ministry of Justice and discussed with trade unions and professional associations at the level of the probation system. According to a press release issued by the Ministry of Justice, the draft law is also necessary following the entry into force of Law 252/2013.
Young people who have turned 17 will be able to donate blood
Save Romania Union (USR) MPs Diana Stoica, Oana Țoiu, and physician Adrian Wiener have submitted a draft law aimed at increasing young people’s involvement in blood donation by lowering the legal age for blood donation to 17. The USR draft law allows young people who have turned 17 to donate blood, with their parents or legal guardian’s written consent and with fulfilling all medical eligibility conditions, according to a press release issued by USR.
Government modifies financing regime of Institute for Research and Development in Genomics
On Tuesday, 22 November, the Government adopted a Government Decision amending Article 9, paragraph 1 of Government Decision 693/2021 on the establishment, organization and functioning of the Institute for Research and Development in Genomics (ICDG). This normative act modifies the financing regime of the aforementioned Institute, which will be financed from its own revenues and from subsidies from the state budget, through the Education Ministry’s budget.
European News 
Romanian Government announces an increase in pensions
Pensions in Romania will rise by 12.5% as of 1 January 2023, and pensioners with low incomes will receive additional financial support next year, Prime Minister Nicolae Ciuca said on Monday. The ruling coalition decided to raise all contributory pensions by 12.5% as of the start of 2023, and people who receive less than 3,000 lei (around EUR 600) in their monthly pensions will also get an additional amount in the coming year, the prime minister said. This "targeted support" will have a different value depending on the monthly incomes, with pensioners at the lowest bracket – who get less than RON 1,500 each month – receiving total support of RON 1,000 split into the two halves of the year.
Social 
Romania is among EU member states where household income decreased in 2021
In 2021, 84% of the European Union population lived in households whose net income either remained stable (66.5%) or increased (17.5%) compared to 2020, while 16% of the EU population reported a decrease in their net income, according to data published by Eurostat on Tuesday, 23 November. The share of the population that declared an increase in their household income ranged from 4.9% in Italy to 34.8% in the Czech Republic. Moreover, the share of the population living in a household with a more or less stable income in 2021 compared with the previous year was above 50.0% in all the EU member states, ranging from 50.7% in Cyprus to 84.0% in Italy.
Applications for the birth rate increase program can be submitted from 5 December
Family Minister Gabriela Firea stated on Tuesday, during the signing ceremony of the joint order approving the implementation norms of the social program of national interest aimed at supporting couples and single people in order to increase the birth rate, that unfortunately, one in five couples in Romania suffered from infertility, which were worrying statistics. She said that applications for the aforementioned program can be submitted starting from 5 December. The program provides for three procedures per year and the settled amount is RON 15,000 (about EUR 3,000), in two tranches.