The National Prognosis Commission revised downwards its economic growth
forecast for this year in its spring report, to 2.9%, from the 4.3%
level projected in winter, amid the conflict between Russia and Ukraine
and the imposed international sanctions. However, in nominal terms, the
value of GDP in 2022 has been increased from RON 1,314 billion to RON
1,327 billion, according to data in the 2022-2025 Spring Forecast. The
current account deficit has been estimated at 6.9% of GDP, compared to
6.7% of GDP in the winter forecast. Private consumption is expected to
grow by 3.1% (3.8% in the winter forecast), investments by 4.8%
(compared to 9.1%) and average annual inflation has been projected to
reach 10.1% in 2022 (9.9% in the previous report).
Ten eastern EU states, including Romania, have signed an official
letter to the European Commission asking for additional help to deal
with the effects of Russia’s war in Ukraine, Rador reports, citing
Latvian public television. The letter was signed for Romania by
ministers Adrian Câciu (Finance) and Marcel Boloș (European Funds). The
other signatory states are Bulgaria, Croatia, Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland and Slovakia. The letter indicates
that the eastern EU needs to shelter more than 5.3 million war refugees
from Ukraine, half of them children, and the ten states say they have
limited financial resources. The member states also point to problems
in implementing cohesion policy projects due to supply chain
difficulties and other challenges.
The President of the Senate, former Prime Minister Florin Cîțu
indicated, in a post on Facebook, that the VAT refunded by the state to
companies in Q1/2022 had been RON 600 million lower than in Q1/2021,
and that the budget deficit had been higher than in March 2021.
According to the former Prime Minister, companies in Romanian are
"overtaxed". The former leader pointed out that "despite all the
efforts and costs for companies that support Romania’s budget with
their taxes, budget deficit in March 2022 was higher than in March
2021. This is the first time in 12 months that this has happened".
Total industrial producer prices (domestic and non-domestic market)
increased by 7% in March 2022, compared to February 2022 and were up by
51.7% year-on-year, according to data published by the National
Institute of Statistics (INS). Prices in the mining industry thus grew
by 129.98% in March 2022 compared to March 2021 and were down 2.03%
against February 2022. The biggest year-on-year price increase in this
category was recorded by crude oil and natural gas extraction, of
132.10%. Prices, however, were 3.38% lower than in February 2022.
A total of five members of the Board of Directors of Banca Transilvania
(BT), the biggest bank on the local market asset-wise, were re-elected
by shareholders during their General Meeting on 28 April, while two new
people joined the board of the most valuable credit institution on the
stock exchange. To be more exact, the new Board of the Romanian banking
system’s leader asset-wise, with a mandate until 2026, is formed of
Horia Ciorcilă (chairman), Thomas Grasse, Ivo Gueorguiev, Vasile
Puscaș, Mirela-Ileana Bordea and the two new members Florin Predescu
Vasvari and Lucyna Stanczak-Wuczynska.
Banks granted RON 195 billion new retail and corporate loans in 2020
and 2021, while the balance of non-government credit stood at RON 330
billion at the end of December, Gabriela Folcuț, executive director of
the Romanian Banks Association (ARB), stated on Tuesday. She said that,
in banks’ case, the digitalization activity had not started during the
pandemic, but long before that; however, a certain acceleration had
been felt in terms of investments during the period 2020 - 2021, of
about RON 2 billion for the first 15 banks by market share.
ING Bank Romania has granted a EUR 8.5 million (RON 42 million) loan to
the Romanian industrial group Promateris to develop its production
capacity for packaging made of biodegradable and compostable materials,
according to a press release. Promateris, a leader on the compostable
packaging segment in Central and Eastern Europe, plans to purchase new
latest generation equipment and build an industrial platform. It will
focus on the production and distribution of low-carbon packaging.
The Smart Grid Carpathian Modernized Energy Network (CARMEN) project,
developed by Delgaz Grid and Transelectrica SA in partnership with the
Hungarian transmission operator MAVIR Magyar Villamosenergia-ipari
Átviteli Rendszerirányító, has received the European Union’s final
approval and has been included onto the list of Projects of Common
Interest (PCI). The CARMEN project is worth about EUR 150 million and
the financing application will be submitted in the second half of 2022.
The project will be implemented over a six-year period, from 2023 until
Anchor Grup, one of the most important real estate developers in
Romania, will build a new residential complex in Bucharest, called
Select Residences, in the Dristor/Vitan area, following a EUR 40
million planned investment. About half of the investment is covered
through financing from Libra Internet Bank, the partner bank in the
development of the project. Located on Calea Dudești, close to InCity
Residences, the complex will include 347 apartments with areas ranging
from 63 to 246 square meters and terraces of up to 37 square meters.
Corteva Agriscience is expanding its sunflower seeds production unit in
Afumați locality following a EUR 14 million investment, the total sum
invested by the company thus amounting to EUR 74 million. The new
storage and conditioning facility will allow shortening the supply
chain, increasing response and delivery capacity, and increasing
processing capacity at European level, to support growth in the region.
Agriculture Minister Adrian Chesnoiu, who participated in the
inauguration of the new unit, said that "investments in agriculture are
of crucial importance, especially in the current social and economic
The Ministry of Finance has proposed, through a draft Government
Decision, a state aid scheme to compensate for the increase in fuel
prices due to the international situation, the aid granted amounting to
RON 0.50 per liter of fuel, yet no more than EUR 400,000 per
enterprise, equivalent in RON, according to a press release issued by
the institution. The cited source also indicates that the deadline for
submitting compensation requests is 1 December 2022.
Romania has already identified alternative sources and routes for
natural gas to reduce dependency on Russian imports, but it needs the
region’s gas corridors to become operational, the energy minister said.
EU energy ministers met in Brussels on Monday (2 May) to discuss the
energy security in Europe after Gazprom cut supplies to Bulgaria and
Poland. In this context, Romania conveyed to the European Commission
that it was important for the country that the Vertical Gas Corridor
and the Trans Balkan Gas Pipeline become operational and function at
the maximum capacity, Romanian Energy Minister Virgil Popescu said
after the Council meeting. The two pipelines are needed to ensure gas
flow from liquefied natural gas terminals and Azerbaijan. Europe is
buying more of their gas in the coming period, the energy minister
explained in a Facebook post.
HoReCa employers have offered more than 11,000 jobs in Romania and
abroad since 9 March, when the Covid-19 restrictions were lifted. The
hospitality industry thus ranks second in the top of sectors with the
most job offers published on eJobs during this period, after Retail.
Moreover, the number of vacant HoReCa jobs made available during the
period 9 March-present is 153% higher than the level recorded during
the same period of last year and 22% higher than in 2019, according to
data from eJobs Romania, the leader of the recruitment market. The
advance is spectacular when compared to 2020, when the lockdown had
been imposed, of +262%.