News

Daily Newsletter - 9 June 2021

Summary

Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Macroeconomic 
Romania’s economy will grow by 6% this year, according to the World Bank
Romania’s economy will grow by 6% this year, after the 4.3% forecast from March, according to the World Bank’s updated projection. The upwards revised estimate comes after the International Monetary Fund (IMF) had also improved its forecasts regarding the evolution of Romanian economy, having estimated a 7% growth rate. According to some reports viewed by HotNews, BRD and BCR have also revised upwards their data on GDP evolution, the growth rate approaching 7%.
Romania must change direction amid the impact of climate change
Companies that are subject to risks amid the climate change agenda generate 40% of the gross value added in Romanian economy, according to a report presented yesterday by Florian Neagu, a deputy director within the National Bank of Romania (NBR)’s Financial Stability Division. He warned that any delay in certain projects’ implementation could affect the beneficial effects on economy as a whole.
Romanian economy grew by 2.8% in Q1 of 2021
Romania’s Gross Domestic Product grew by 2.8% in Q1/2021, compared to Q4/2020, to RON 284.971 billion at current prices, as a seasonally adjusted series, according to provisional data published by the National Institute of Statistics (INS) yesterday. In terms of GDP use, the decrease in the contribution was mainly due to net exports (-2.6%), a consequence of the 5.4% increase in the volume of imports of goods and services, compared to the only 0.6% rise in the volume of exports of goods and services.
Financial 
The number of transactions brokered by the most active brokers on BSE has increased
The ten most active brokers on Bucharest Stock Exchange brokered RON 14.8 billion cumulated transactions in the first five months of 2021, up by 56.6% (RON 5.3 billion) against the similar period of 2020. Thus, the top 10 brokers secured a cumulative market share of 92.45%, compared to 86.82% in the first five months of 2020, which means that concentration at the peak has grown year-on-year.
Private pension funds had RON 83.34 billion total cumulated assets at the end of March
The private pensions market has been the least affected by the COVID-19 pandemic, given its long-term saving and investment policy. Over time, there have been episodes of volatility to have marked private pension funds, but their assets have generally increased from one period to another. Private pension funds (Pillar 2 and Pillar 3) cumulated RON 83.34 billion total assets at the end of March 2021, 33% more than in the previous year.
Over RON 735 million guarantee requests were submitted within the "New Home" program
The total value of the guarantee requests submitted within the "New Home" program during the period 29 March – 4 June 2021 exceeded RON 735 million, Finance Minister Alexandru Nazare has announced. He has pointed out that this represents about 49% of the RON 1.5 billion ceiling allocated for the current year.
Investment 
Dairy producer Artesana plans to access European funds
Dairy producer Artesana plans to access European funds to start a goat farm, an investment that could amount to EUR 1-1.5 million, as the company has already bought the land for this project, Daniel Donici, managing partner and co-founder of Artesana, has explained. The company currently processes 12,000 – 15,000 liters of milk per day, six or even seven days a week, in its plant in Tecuci, Galati County.
Pro Economica Alapítvány Foundation is investing in several tourism projects
Pro Economica Alapítvány Foundation will invest about EUR 44 million non-reimbursable funds in several tourism projects in the region of Transylvania in the following period. The region has major potential, as proven in the past few years; therefore, investments will generate substantial economic growth, will create new jobs, but also new opportunities for tourists.
The citizens in Iaşi will benefit from drinking water supply infrastructure works
The regional water infrastructure development project in Iaşi County, financed through the Large Infrastructure Operational Program (POIM), was presented yesterday, during an event organized by Iaşi County Council, in collaboration with the company ApaVital. The investments to be made amount to EUR 509 million. The project aims to increase the level of wastewater collection and treatment, as well as the degree of drinking water supply in 113 localities, part of 41 administrative-territorial units in Iaşi County.
Legislative 
Government could approve draft law banning public sector employees to simultaneously receive a pension and a salary
The draft law on some measures regarding the remaining in activity of persons who meet retirement requisites has been included on the agenda of today’s Government meeting. Thus, public sector employees are not allowed to simultaneously receive a pension and a salary, but pensioners can continue their activity, upon request, until they reach the age of 70.
Law 55/2020, through which state of alert is declared in Romania, is constitutional
The Constitutional Court of Romania ruled yesterday that law no. 55/2020, through which the state of alert is declared in Romania, was constitutional. Only one constitutional challenge was approved, that of Article 72, paragraph 2, which does not have an impact on the normative act as a whole.
European News 
The world’s largest oil and gas companies increased investment in clean energy in 2020
The world’s largest oil and gas companies increased investment in clean energy by 34% in 2020, despite a 6% fall in global energy demand caused by the coronavirus pandemic, according to new research published on Tuesday (8 June). Investment in renewables was the least affected by spending cuts and emerged as the most resilient during the COVID-19 crisis, with oil and gas majors investing $8.8 billion (EUR7.2 billion) in 2020, compared with $6.6 billion the year before.
Social 
Doctor Valeriu Gheorghiţă spoke about the decrease in the anti-Covid-19 vaccination rate
Doctor Valeriu Gheorghiţă has stated that the decrease in the anti-Covid-19 vaccination rate expresses, in fact, the reduction of people’s willingness to get vaccinated, and those involved in the campaign cannot do more than what people understand that they have to do. In his opinion, the fundamental problem has to do with people’s trust in authorities in general, which has decreased considerably in all these decades, and which cannot be suddenly regained.
Save the Children Romania organization conducted a study on Covid-19 consequences in children
More than 90% of children who needed psychological therapy in the past year developed emotional disorders related to the pandemic context, according to a study conducted by Save the Children Romania. The study indicates that one in three children experienced anxiety and needed counselling and psychological-emotional support, the percentage having exceeded 50% in teenagers, going up to extremely serious consequences, namely suicide attempts.