News

Daily Newsletter - 12 July 2018

Summary

Macroeconomic News (4)

Industry turnover up 11.4% in May

The combined turnover of industrial companies grew 11.4% year-on-year in May, a drop from the 14.8% posted for April, according to data released by the National Statistics Institute (INS) on Wednesday. The main drives of the national industry were the manufacturing (11.4%) and mining (11.2%) sectors.

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Inflation stopped at 5.4%

The inflation rate was 5.4% in June, same as the previous month's and up only 0.02% compared to the corresponding month of 2017, according to data released by the National Statistics Institute (INS) on Wednesday. The prices of non-food goods jumped 7.82%, while food prices were up 3.86%.

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Revenues grew five times faster than GDP

The first quarter data released by the National Statistics Institute (INS) showed that the household quality of life had increased significantly compared to the corresponding quarter of 2017, growing five times faster than the GDP. This is a major recovery compared to Q1, 2017.

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UniCredit Bank: "The economy will grow only 3.9% this year"

The national economy will grow only 3.9% this year, compared to 6.9% in 2017, and the trend will hold in 2019, according to the quarterly report issued by UniCredit Bank. The bank's analysts say BNR is in a position to keep increasing the key rate, but political pressure and default rates could limit the BNR's room to maneuver.

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Financial News (2)

Number of local banks shrinks

The number of local banks continued to shrink in 2017, as the process of consolidation grinds on. The national market saw the total number of banks falling from 43 in 2008 to 35 in 2017 and the process does not seem to stop, given the sharpening competition, the high cost of staying on the market and the group level decisions to withdraw from certain markets, according to BNR.

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Omer Tetik, CEO Banca Transilvania: "I, too, think some market sectors should be regulated"

The CEO of Banca Transilvania has urged caution regarding the three bills submitted by Senator Daniel Zamfir (ALDE) and said that the current delays are a good sign because the final decisions require careful consideration. Tetik noted that local interest rate caps should not lower than in Great Britain and that any measures should take into account the experience of countries with a market economy tradition.

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Investment News (1)

APMC to spend EUR 50 million on dredging works

The Constanta Administration of Maritime Ports (APMC) announced yesterday that it would launch a major dredging project this autumn. The purpose of this undertaking is to increase the port's depth from 7 meters to 9 meters, which would allow the latest RO-RO ships to dock in Constanta. The project is worth almost EUR 50 million.

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Legislative News (1)

Ministry of Finance changes state aid rules again

The Minister of Finance has amended Government Order 807/2014 regarding the establishing of state aid programs with the purpose of stimulating investments that have a major impact on the economy. The new rules are meant to support major investment projects in order to boost regional development.

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Politics (2)

Catu (PNL): The state, led by Dragnea and his gang, wants the inflation to rise as much as possible to put the breaks on an overheated economy

Senator Florin Catu (PNL) said the alarming growth in prices and inflation is exactly what PSD leader Liviu Dragnea had wanted. According to Catu, the state wants the inflation to rise as much as possible to put the breaks on an overheated economy.

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President Iohannis at NATO Summit

President Klaus Iohannis is in Brussels for the NATO Summit. The schedule includes a meeting of the North-Atlantic Council, a working meeting of allied leaders and a Resolute Support meeting to discuss the situation in Afghanistan. A separate meeting will focus on the Black Sea security situation and will be attended by representatives from Georgia and Ukraine.

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Social (1)

Romania's population dropped 6.2% last year

The European Union reported 5.3 million deaths and 5.1 million births for 2017, leading to a contraction of the Union's population, according to Eurostat. The EU population was estimated at 512.6 million on January 1, 2018, compared to 511.5 million on January 1, 2017. The increase from net migration.

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