News

Daily Newsletter - 7 November 2019

Summary

Macroeconomic News (5)

Retail turnover up 7.8% in September

The retail sector reported a 7.8% increase in turnover for September, compared to the corresponding month of 2018, according to data released by the National Statistics Institute (INS) on Wednesday. The previous month's growth rate was 6.7%.

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EBRD upgrades Romanian economy estimates

The European Bank for Reconstruction and Development upgraded its estimates on the Romanian economy in 2019 and maintained the GDP forecast for 2020. Thus, Romania's economy is expected to grow 4% this year, compared to an increase of 3.2% expected in May.

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State budget has RON 21.7 billion hole

Prime Minister Ludovic Orban announced on Wednesday that the state budget shortfall stood at RON 11 billion. The statement was contradicted by the Ministry of Finance's own reports, which indicate a RON 21.7 billion hole in the budget, almost twice higher than the prime minister's figure.

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PM complains of agriculture deficit

Romania had an agricultural products trade deficit of EUR 1.2 billion in the first seven months of the year, and the problem is not just the deficit, but also the structure of imports and exports, Prime Minister Ludovic said on Wednesday. Orban added that agriculture contributes 4.8% to the GDP, a figure he deems insufficient.

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IMF maintains forecast for Romania

In the outlook report on the European economy released on Wednesday, the IMF maintained its forecast for the Romanian economy, featuring an economic growth rate of 4% this year and an inflation of 4.2%. The forecasts are the same as in the October edition of the World Economic Outlook.

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Financial News (4)

BNR explains interest rate decision

The National Bank of Romania's (BNR) Board of Directors decided to keep the key rate at 2.5% per year, explaining that the annual inflation rate dropped to 3.5% in September, while the real GDP fell slightly. This was the 11th consecutive board meeting that kept the key rate unchanged.

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Constitutional Court rules debtor relief partly unconstitutional

The Constitutional Court ruled yesterday, November 6, that essential modifications made to debtor relief regulations are partly unconstitutional. One of the unconstitutional parts is Article 2 of the amendment, which introduced and defined unpredictability in exchange rates.

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BRD reported RON 1.22 billion in earnings

BRD-GSG posted RON 1.22 billion in earnings for the first nine months of this year, up 7.4% from the corresponding period of 2018. The net revenues amounted to EUR 2.44 billion, up 6.9% on an annual basis, driven by rising interest and non-interest revenues.

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BNR governor reacts to foreign statements

BNR Governor Mugur Isarescu said yesterday, November 5, that Romania's position regarding eurozone accession is clear, but nuanced. Isarescu added that the European Union has not made any progress toward a fiscal union in the last 20 years.

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Investment News (2)

Metropolitan Residence to develop EUR 100 million ultra-premium project in Bucharest

Metropolitan Residence announced on Wednesday the launching of the Crown Towers project, an ultra-premium ensemble of 230 flats located in Bucharest's Herastrau neighborhood. The project will also feature office space, retail space and an entertainment center, with the total cost estimated at EUR 100 million.

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Transport infrastructure investment top priority for new cabinet

"For us, investment in transport infrastructure is an absolute priority. Romania's economic development is decisively dependent on our ability to unlock major projects, accelerate all procedures and ensure compliance with contracts and have the ability to use all the financial resources at our disposal," said Prime Minister Orban.

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Politics (1)

Dancila challenges Iohannis to debate

Viorica Dancila, the Social Democratic Party's (PSD) candidate in the presidential election, challenged again Klaus Iohannis to a debate. "You don't have to take the ministers to the Victoria Palace every morning, just come before the country and explain your achievements from the past five years," said Dancila.

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