News

Daily Newsletter - 15 May 2018

Summary

Macroeconomic News (4)

Public debt up EUR 1.25 billion

Romania's public debt jumped EUR 1.25 billion in the first quarter of this year, reaching a total of EUR 34.79 billion, according to data released by the National Bank of Romania (BNR) on Monday. The total foreign debt surged EUR 2.05 billion to EUR 95.53 billion.

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Industrial production dropped to three-year low

The industrial production expanded 4.9% in the first quarter of this year, but the annual dynamic is the lowest since Q4, 2016, according to the National Statistics Institute (INS).

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GDP to grow 5.5% per year

The authorities are expecting the national economy to keep growing at a rapid pace. The estimated average annual growth rate for the country's GDP is 5.5%, slightly above potential, according to the 2018-2021 Convergence Program published by the Ministry of Finance (MFP) on Friday.

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Annual inflation rate hits 5.2%

The annual inflation rate climbed to 5.2% in April, the highest figure since June, 2013. The price of fresh fruit soared 13.9% from December, 2017, according to data released by the National Statistics Institute (INS) on Monday.

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Financial News (2)

BCR was top player of state bond market in Q1

BCR was the leading player of the state bond market at the end of this year's first quarter, followed by ING Bank and UniCredit Bank. BCR has managed to maintain its position since the end of 2017, after closing 2016 in fourth place.

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CEC Bank posts RON 222.7 million in gross profits

CEC Bank posted RON 222.7 million in gross profits for 2017, dropping to seventh place in the index of banks. The bank's assets reached RON 31.65 billion, up 12% from 2016, while the market share surged to 7.42%.

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Investment News (3)

Microsoft looking for new office space in Bucharest and Timisoara

Microsoft Romania is considering the possibility of relocating its Timisoara offices from Optica Business Park to Openville, according to market information. The US corporation wants to expand from 1,100 sqm to 2,000 sqm.

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New children hospital opens

The new children hospital "Dr. Victor Gomoiu" was inaugurated on Monday in the presence of Prime Minister Viorica Dancila, the Minister of Health, Sorina Pintea, and the Mayor of Bucharest, Gabriela Firea. The old hospital site will be used for an excellence center in pediatric oncology.

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Total investment down

The aggregated value of national investments reported by EU member states was close to EUR 3,100 billion last year. Construction accounted for around half of the total, with 31% going to vehicles, tools and weapons systems and 19% to intellectual property rights. The latter category has been growing quickly for the past ten years, albeit not in Romania.

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Legislative News (1)

Dragnea says Cabinet would pass procurement decree by next week

The Cabinet is expected to adopt by next week, at the latest, the emergency decree that would shorten the time allocated to procurement procedures, according to PSD leader Liviu Dragnea.

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Politics (1)

President Klaus Iohannis invites PM Dancila to meeting

President Klaus Iohannis has invited PM Dancila to a meeting in order to discuss the country's foreign policy, including the relocation of the Romanian embassy to Israel. The President had initially invited only the Minister of Foreign Affairs to provide an explanation for the Government's decision to block an EU resolution criticizing the relocation of the US embassy.

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Social (1)

Defense unions stage protests, demand local production

The defense industry labor unions have launched a series of protests. The unions demanded that the national industry provide 30% of all defense procurement and complained that the industry is collapsing even as the Government spends 2% of the GDP on defense.

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