News

Daily Newsletter - 4 September 2020

Summary

Macroeconomic News (2)

Economy to recover rapidly before plateauing

Csaba Balint, a member of the National Bank of Romania's (BNR) board, thinks that the economic recovery will be somewhere between V-shaped and L-shaped. The economy will recovery quickly at first, before plateauing and going through some dips before returning to the pre-pandemic level.

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Digital economy could reach 20% of GDP in 10 years

The digital economy could account for at least 20% of GDP by in 2030, a GDP increase of about EUR 50 billion, according to a study conducted by Factory 4.0 and Frames. Romania has the chance to increase its economic competitiveness in a relatively short time, if it focused on accelerating digitization and convergence towards a technology-based economy, according to the study.

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Financial News (3)

OTP Bank to open regional center in Timisoara

Mulberry Development and OTP Bank announced the future opening of a regional center featuring the full range of banking services, located on the ground floor of the ISHO Offices building, according to a statement from the real estate company. The new regional center will most likely open in December and will service all categories of customers.

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Romaero expects RON 34.4 million loss this year

Romaero, a state-owned company specializing in aeronautics manufacturing, services and R&D, expects to post a loss of RON 34.4 million at the end of this year, on revenues amounting to RON 148.75 million. Last year, the company lost RON 51.36 million.

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Omniasig sales boom

Omniasig VIG reported a significant increase in health insurance sales, like most other insurance companies that offer this type of policy. The company's gross premiums written increased by 2% in the first half of 2020, compared to the corresponding period of 2019.

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Investment News (5)

EC approved EUR 875.5 million financing for Sibiu-Pitesti highway

The European Commission approved on Thursday the granting of EUR 875.5 million in financing for the construction of the Sibiu-Pitesti highway, according to a press release. The funds were allocated through the European Union's cohesion policy, along with EUR 578.4 million for improving Romania's disaster reaction capacity.

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Haier factory to be ready next spring

Chinese appliance manufacturer Haier is building at Ariceştii Rahtivani, Prahovacounty, a refrigerator factory worth a total of more than EUR 53 million, which will benefit of EUR 25 million in state aid. The factory will occupy an area of 57,500 square meters and will be built by the Baidetner group, at a cost of more than EUR 21 million.

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Economy Minister spoke of strategic partnership with Lockheed Martin

The Minister of Economy, Virgil Popescu, stated on Thursday that he wants the Romanian aeronautical industry to turn into a development hub with the help of Lockheed Martin. On Thursday, the Minister attended the signing of the Memorandum of Understanding between ROMAERO and Sikorsky, part of the Lockheed Martin group, that would see the foundation in Romania of a Black Hawk Helicopter Equipment and Maintenance Regional Center for Central Europe.

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NEPI offers to buy Romexpo property

South-African investment fund NEPI, the biggest owner of malls in Romania, announced that it wants to buy the 46-hectare Romexpo property that the Parliament had handed out to the Chamber of Commerce, for free. The property is estimated at EUR 200-250 million and it will be used by the Chamber of Commerce and Iulius Group to develop the biggest real estate project in the country.

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Synergy enters local market with retail park and premium housing

Synergy Construct has started developing a retail park in Voluntary, near the A3 highway, while also working on a block of premium flats in Bucurestii Noi, together with Levent Kirman. The decision to begin real estate development operations in Romania was taken after Synergy Construct's turnover tripled last year.

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Politics (1)

Cabinet to decide parliamentary election date

The Cabinet was scheduled to discuss at yesterday's session the bills required to hold the parliamentary election on December 6. The Permanent Electoral Authority (AEP) has prepared four bills regarding the upcoming election.

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Social (1)

Wages up 11.47% in Q2

The value of wages adjusted for the number of working day rose 11.47% in the second quarter of this year, compared to the previous quarter, and 16.11% compared to the corresponding quarter of 2019. The main drive behind the increase in wages was the disruption of operations by the coronavirus.

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