News

Daily Newsletter - 8 July 2020

Summary

Macroeconomic News (5)

EC expects Romanian economy to contract 6% in 2020

The European Commission released the summer economic forecast for this year, featuring a 6% contraction for the Romanian economy, followed by a 4% increase in 2021. The European Union's economy will shrink 8.3% before expanding 5.8% in 2021.

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State borrows USD 3.3 billion

The state will borrow USD 3.3 billion today, a record figure for a bond issue denominated in US dollars. This is the third bond issue sold on the international markets this year, the previous two having been sold in January (EUR 3 billion) and May (EUR 3.3 billion). The state needs money because the deficit is very high and the uncertainties caused by the coronavirus pandemic are hurting the economy.

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GDP up 2.7% in Q1

Romania's Gross Domestic Product increased by 0.3% in the first three months of the year, compared to the fourth quarter of 2019, and 2.4% compared to the corresponding quarter of 2019, according to the preliminary data released by the National Statistics Institute (INS) on Tuesday.

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Rent funds for retailers

The Ministry of Economy announced on Tuesday that retailers would be able to access RON 160 million worth of funds in order to finance the rents for the period when their stores were closed because of the state of emergency or alert. The money will be accessible through the aid program for commerce and service activities affected by Covid-19, whose budget will be increased from RON 40 to RON 160 million.

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Commerce overtakes industry as GDP share

The National Statistics Institute (INS) confirmed the 2.7% (adjusted) economic growth rate for the first quarter of this year, compared to the corresponding period of 2019. The nominal value was revised slightly downwards, from RON 216.2 billion to RON 215.9 billion.

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Financial News (3)

Alpha Bank Romania clients can use Apple Pay

Alpha Bank Romania is offering its clients access to the Apple Pay service, a means of payment that allows clients to avoid handing their cards over to other individuals in order to complete payments, touching the POS keys, or handling cash. Every Apple Pay is authenticated with Face ID, Touch ID or the device's access code, plus a dynamic security code.

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Deposits continue to exceed loans

The population's position as a net creditor of the national banking system continued to increase in the first quarter of 2020, rising to a 16-year high in the case of foreign currency deposits and loans. By comparison, RON-denominated loans are growing faster than deposits.

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Investment News (1)

Enel companies invest EUR 12 million in smart meters

The distribution companies belonging to Enel Romania will spend EUR 12 million this year on installing smart meters. By the end of the year, around 900,000 clients of the company will have such meters installed. The total investment in smart metering over the past five years is EUR 51 million.

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Politics (2)

Local election period to start by July 29

The Standing Electoral Authority (AEP) announced that the local election period will start no later than July 29 this year. The Central Electoral Bureau (BEC) will be set up on August 2, provided that Parliament sets the local election day as September 27. The campaign will begin on August 28.

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Tariceanu to ask Parliament to launch criminal action against PM Orban

Calin Popescu Tariceanu, leader of ALDE, said he cannot overlook the fact that the Prime Minister had urged the population to disregard the Constitutional Court's ruling. Tariceanu will ask the Parliament to launch a criminal action against PM Orban.

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Social (2)

Romania accounts for almost 25% of EU's teenage mothers

The Save the Children organization conducted a study which showed that Romania accounts for almost a quarter of the European Union's underage mothers. Less than 2% of these mothers benefit from social assistance services.

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Only half of Romania's youth optimistic about future chances

Only 55% of young Romanians are optimistic about their personal chances in the future, given the crisis caused by the new coronavirus. For now, health (46%) and jobs (32%), including vocational training, are the biggest anxieties, according to a survey by IRSOP. Half of the "18-29 generation" (about 1.3 million young people) believes that the pandemic will affect its future plans. Almost two-thirds (60%) are convinced that the pandemic will leave deep traces, and life will never be the same.

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