News

Daily Newsletter - 29 June 2020

Summary

FIC (1)

Ramona Jurubita, FIC President: We must be more proactive in attracting foreign investment to Romania

Ramona Jurubita, President of the Foreign Investors Council, spoke exclusively about attracting foreign investment in Romania, live on "Upgrade Romania - Investment - The Engine That Would Restart the Economy". "One thing that I think needs to be pointed out is the paradigm shift in terms of economic growth, namely the emphasis on investment. We have heard, for example, about public investment, but I think that it is equally important to take into account private investment, both domestic and foreign capital. It is no coincidence that, as a representative of the Foreign Investors Council, we embrace and see an opportunity in this direction, but we must be aware at the same time that global forecasts in terms of investment volume are declining.We need to have a much more proactive approach to attracting foreign investment in the country and, at the same time, work on Romania's image as a destination that should be on a map of potential investors" said Ramona Jurubita.

Jurubita (FIC): We must be more proactive in attracting foreign investment to Romania

Jurubita (FIC): We must be more proactive in attracting foreign investment to Romania

Jurubita (FIC): We must be more proactive in attracting foreign investment to Romania

Top

Macroeconomic News (4)

Consumption-driven economic growth is now a disaster

Romania's GDP per capita has grown at an average rate of 5.5% per year over the past 5 years, the best growth rate in the European Union. At the same time, investment (both net and private) have declined. The figures indicate once again that the rapid development was fueled by consumption, an indicator that is collapsing this year. Florin Pogonaru, president of the Association of Romanian Businesspersons (AOAR), believes that the way the economy grows is important.

Top

Trade deficit for food products down almost 9% in Q1

Romania's food trade deficit dropped to EUR 440.9 million in the first quarter of this year, down almost 9% compared to the corresponding period of 2019. The intra-EU deficit is EUR 953.28 million, while Romania's trade with third party countries showed a EUR 512.3 million surplus, according to the Ministry of Agriculture and Rural Development (MADR).

Top

Deficit rose to 3.59%

The state budget showed a RON 38.8 billion deficit for the first five months of this year, the equivalent of 3.59% of the GDP. Almost half of the deficit is the result of the tax breaks and stimulus spending implemented in response to the COVID-19 epidemic.

Top

75% of local entities of multinational groups expect revenue drop

75% of the local entities owned by multinational groups expect their revenues to fall by as much as 25% this year, while the main extraordinary expenses generated by the COVID-19 crisis are labor-related expenses, according to a survey conducted by PwC Romania in April and May.

Top

Financial News (2)

Local banks increase market share

The market share held by lenders controlled by local interests increased to 18.2% in 2019, according to the 2019 report of the National Bank of Romania (BNR).

Top

Banks' exposure to farming companies is 8% of loan portfolio

The lenders' exposure to farming companies accounts for 8% of the total portfolio of loans granted to non-financial companies, while loans to food industry companies account for 5.5%, according to the annual report released by the National Macroprudential Supervision Committee (CNSM).

Top

Investment News (2)

Chinese companies could invest in Oradea's industrial parks

Chinese companies could invest in Oradea's industrial parks, as well as in certain public projects (hospitals or schools) in the Bihor County, working through public-private partnerships with the local administration, according to a statement from the county branch of the Romania-China Chamber of Commerce and Industry (CCIRC).

Top

First District Hall expects bids for new hospital

Dan Tudorache, Mayor of Bucharest's First District, announced the future construction of "the most modern emergency hospital in Bucharest". The Saint Basil the Great Hospital will have 1,015 beds and 37 operating rooms, at an estimated cost of EUR 500 million.

Top

Politics (1)

USR-PLUS Alliance presents Bucharest candidates

The USR-PLUS Alliance presented on Sunday its candidates for Bucharest's district halls: Clotilde Armand, Radu Mihaiu, Ana Ciceala, Simona Spataru, Alexandru Dimitriu and Alexandru Gadiuta. Negotiations with the National Liberal Party (PNL) for a joint ticket are still ongoing.

Top

Social (2)

382,000 individuals were unemployed in Q1

"The unemployment rate was 4.3% in the first quarter of 2020, up 0.4 percentage points compared to the previous quarter and 0.2 percentage points compared to the corresponding period of last year," according to INS data. In the first quarter, the employment rate for the 20-64 age group was 70.6%, 0.6 percentage points above the national target set by the Europe 2020 Strategy.

Top

IRES survey regarding local COVID risk perception

Romanians are concerned about the situation generated by the new coronavirus, but are convinced they will adapt to the changes in their lives, according to an IRES survey.

Top