News

Daily Newsletter - 4 May 2018

Summary

FIC (1)

Romania lost incentive

Although Romanian labor is still cheap, the country is plagued by two major problems: a shortage of labor in general and of skilled labor in particular. 68% of FIC members say Romanian labor is no longer competitive.

First relevant excerpt:

...uă mari probleme: nu prea mai avem muncitori, iar pe de altă, parte muncitorii calificaţi sunt tot mai puţini. Relevant este faptul că 68% din membrii Consiliului Investitorilor Străini spun că forţa de muncă existentă nu este suficient de competitivă, potrivit unui sondaj recent. 343 de români apţ...

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Macroeconomic News (3)

INS: Industrial production prices up 3.8% in March, 2018

The industrial production prices increased by 3.8% in March, compared to the corresponding month of 2017, according to the National Statistics Institute (INS). Intermediary goods saw a 5.2% increase in prices, the highest in the INS report.

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Economy slows down

The real GDP continued to grow in 2017, driven by private consumption, itself boosted by a loose fiscal policy. The GDP growth rate is expected to fall in 2018, while still remaining robust, according to the European Commission's press release. The labor market will stay rigid, while the inflation has increased significantly and will continue to do so over the course of 2018.

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Construction turnover could reach RON 30 billion this year

The construction market did well in 2017 and maintained its encouraging trend in the first quarter of 2017, according to a survey commissioned by Arabesque, a retailer of construction and finishing materials. The demand for office, residential and industrial space was driven by the significant economic growth, which could push the sector's aggregated turnover close to RON 30 billion this year.

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Financial News (4)

Romania rose 36 places in tax-accounting index

Businesses operating in Romania are facing the 18th most complex accounting and taxation system in the world. Romania jumped 36 places in the Financial Complexity Index in only one year. The only Central and Eastern European countries doing worse that Romania are Croatia (12th place) and Albania (14th).

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Banca Transilvania releases plan for CHF-denominated loans

Banca Transilvania, owner of 99.15% of Bancpost's shares, has released its plan for the Bancpost clients whose loans are denominated in Swiss francs. Approximately 2,300 clients will be offered a conversion deal with an 18% discount. The clients can convert their loans to either RON or euros.

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BCR expects increase in interest revenues

BCR announced that interest revenues would resume growing in 2018, the first increase after seven consecutive years of contraction. However, the growth rate will not reach double digits. Sales of Prima Casa loans will remain significant.

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Chamber of Deputies blames price hikes on external factors

The Chamber of Deputies announced after the meeting between the BNR leadership and PM Viorica Dancila and Chamber leader Liviu Dragnea that "much of the price hikes seen over the past months had been caused by external factors, that do not depend on the Government or BNR's actions".

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Investment News (2)

Azur to invest in Timisoara paint factory

Azur Timisoara, a subsidiary of ICC Industries, will invest EUR 1.2 million this year on increasing its production capacity, developing new products, marketing and sales.

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CNPR receives RON 170 million equity boost

The Ministry of Communications announced on Thursday that the Romanian Post (CNPR) would receive a RON 170 million equity boost. The company's accounts have already been credited with RON 153 million. This is the first capitalization that the state does at CNPR. The move is seen as a major investment and proof of the Government's confidence in the company's capacity to "reinvent itself in the medium and long-term".

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Legislative News (1)

Tax exemption for lavender

The revenues obtained by farmers from growing lavender could be given tax-free status, according to a bill passed by the Senate. The tax exemption will be valid for a certain acreage.

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Politics (2)

Dragnea to attend Europe Day event

Liviu Dragnea, President of the Chamber of Deputies, announced that he and Prime Minister Viorica Dancila will attend the Europe Day event hosted by the Cotroceni Palace.

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BNR, Cabinet officials meet

BNR Governor Mugur Isarescu and Senior Deputy Governor Florin Georgescu met yesterday with Prime Minister Viorica Dancila and Minister of Finance Eugen Teodorovici in the office of Chamber president Liviu Dragnea.

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Social (1)

Unemployment rate at all-time low

The unemployment rate calculated according to the World Labor Bureau's methods was 4.5% in March, 2018, a drop of 0.7 percentage points from the corresponding month of 2017. This is the lowest unemployment rate since 2004, according to the National Statistics Institute (INS).

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