News

Daily Newsletter - 6 January 2021

Summary

Macroeconomic News (4)

Evolution of FMGC consumption in Romania

The fast moving consumer goods industry grew 6.2% in volume and 10.6% in value in September, 2020, compared to the corresponding month of 2019, according to market research firm Nielsen Romania. This is one of the highest growth rates in Europe, especially given the lockdown months.

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Industrial production prices down 0.7%

Total industrial production prices (domestic and foreign market) fell 0.7% in November, on an annual basis, according to a statement from the National Statistics Institute (INS). On the other hand, the total industrial production prices (domestic and foreign market) increased by 0.6% compared to the previous month.

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Romania exported EUR 302 million worth of livestock in Q1-Q3 2020

Romania exported livestock worth EUR 302.21 million in the first nine months of 2020, down 6.4% from the corresponding period of last year, when revenues exceeded EUR 332.85 million, according to the trade balance figures published by the Ministry of Agriculture and Rural Development (MADR). Exports to intra- and extra-EU countries reached 139,603 tonnes in the first nine months of last year, down almost 13% year-on-year.

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Drought ravaged national agriculture

According to the latest estimates from the European Commission, Romania suffered the largest decrease in cereal production in the EU last year, with a loss of more than 46%. Romania lost its leading position among European maize producers to France, while exports fell by more than 50%. However, Romania is still the leading sunflower producer, despite a significant drop in production.

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Financial News (3)

Distressed debtors can apply for installment deferrals

The Ministry of Finance should draft the rules for enforcing the new decree on loan installment deferrals in 2021, which would be approved by government decision within 10 days from the decree's publication, namely until January 10. The option was introduced last year in order to support debtors facing difficult situations because of the coronavirus pandemic.

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Cabinet's gross financing needs estimated at RON 127 billion

The Cabinet's gross financing requirement this year was estimated to RON 127 billion, smaller than last year's record RON 143.5 billion. In order to reach the 7% of GDP budget deficit target, the Cabinet will need RON 79.5 billion in new loans, plus RON 48 billion for debts coming due.

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Reference exchange rate heading toward RON 4.9 per EUR

In the first quarter, the exchange rate will probably reach RON 4.9 for EUR 1, but will not exceed this threshold. ROBOR will range between 1% and 2% due to market liquidity, but also due to BNR's interest margin (1% on deposits and 2% on loans). Even if there is enough room for a decrease in the key interest rate, BNR will probably not take this step because the 1.5% interest rate is already negative, in the context of a 2.14% inflation rate.

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Politics (2)

PSD: With USR in power, we're being told highways would show up after 2024

The Social Democrats are blasting the Save Romania Union (USR) following a statement spelling the death of the campaign promise to get highways built in 2021.

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AUR representatives met with Education Minister

Representatives of the Romanian Unity Alliance (AUR) will meet today with the Minister of Education, Sorin Cimpeanu, in order to discuss the reopening of schools. "We demand the opening of all educational institutions, whether public or private, starting with January 11. The so-called online education is a pipe dream. We demand transparency and the release of school inspectorates' reports regarding the children's access to the Internet," said AUR leader George Simion.

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Social (2)

Eurostat warns about worrying phenomenon

Almost half of Romania's population (45.8%) lived in overcrowded housing in 2019, with only 7.7% of the population living in houses considered to be too large, Eurostat data show. In the European Union (EU), only 17.2% of the population lived in overcrowded housing in 2019.

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Florin Citu requests completion of 932 vaccination centers

Prime Minister Florin Citu told prefects during his first videoconference that the second vaccination stage will start next week. The Prime Minister urged all prefects to complete the preparations for opening the 932 vaccination centers and to make sure this unprecedented operation would go smoothly. Currently, 230 vaccination centers are operating around the country.

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