The European Bank for Reconstruction and Development (EBRD) significantly worsened estimates about the evolution of Romanian economy in 2024, the low demand for eternalization affecting the IT sector, according to a report released by the international financial institution, on Thursday. According to the latest EBRD estimates, Romania's GDP would record an advance of 1.4% this year, on the drop compared to the 3.2% estimate made in May. In 2025, the increase will be only 2.6%, from 3.4% foreseen in May. South-East European EU countries are affected by the low demand, although consumption was resilient, following solid salary increases. In Bulgaria and Romania, the rise of the lowest salary stimulated demand and also had as result the expansion of commercial deficit and was added to inflation pressures, the EBRD report shows. On the background of low foreign demand, Romania's economic growth slowed down to 2.1% in 2023, while in semester 1, 2024 an advance of 1.3% should have been registered. Also, the IT sector slowed down signficantly, in line with global tendencies, while industrial output stagnated. On the other hand, investments in infrastructure continue to support growth. Inflation proved to be constant, following slary and pension increases. In July 2024, the annual inflation rate of 5.8% was the highest in EU, according to EBRD. Moreover, the Central bank (BNR) reduced the interest rate to 6.5%, prospects of this summer. Fiscal policy continues to be expanding, deficit being 3.6% of GDP in semester 1, 2024, higher than in the last 3 years. While incomes had a good evolution in semester 1, 2024, following the measures announced at the end of 2023, expenses went up. Thus, capital expenses, salaries and expenses with goods and services grew by over 20% annually. The latest estimates of the Fiscal Council show a deficit expansion of 8% of GDP in 2024, according to the report of the international financial institution. Romania's GDP will grow by 1.4% in 2024 and 2.6% in 2025, supposing that there will be a recovery in semester 2, 2024, despite the need of fiscal consolidation. EBRD warns that the delay in absorbing European funds is a risk for the economic growth prospects. IMF has reviewed as dropping estimates about te growth of Romanian economy this year, from 3.8% as foreseen in October 2023, to 2.8%, according to the “World Economic Outlook” released in April. Last week, the National Commission for Strategy and Prognosis reviewed on the drop to 2.8%, from 3.4% previously, estimates about this year's PIV advance.
Real estate developer Globalworth has begun construction on Green Court D, the fourth building in its Green Court office complex in Bucharest’s Aurel Vlaicu area. Scheduled for completion in 2027, the project is now in its preliminary phase, which includes enclosure works and excavation for the basement structure, the company said. The new building will […]
Romania’s National Committee for Emergency Situations decided to distribute drinking water from the state reserves to 13 localities in the counties of Prahova and Dâmboviţa. The area was severely impacted by a drop in water levels at the Paltinu Dam, leading to problems in the water distribution system and affecting over 100,000 people, local hospitals, […]
Rock star Marilyn Manson will return to Romania next summer to perform at Rockstadt Extreme Fest, organizers announced on Tuesday, December 2. He is among the headliners confirmed for the local rock and metal festival, which will take place from July 27 to 31 in Ghimbav, Brașov county. “For the first time ever, Marilyn Manson […]
Romania’s government has assumed responsibility in Parliament for legislation reforming magistrates’ pensions, prime minister Ilie Bolojan announced on December 2. He said the draft law had received the opinion of the High Court of Cassation and Justice, noting that the court’s assessment was negative. It is the government’s second attempt to have the bill promulgated, […]
Romania Education Alliance (REA), the first private school network in the country, announced it has exceeded the milestone of 1,000 students enrolled across its member schools just one year after launch. "The fact that we surpassed 1,000 students in our very first year of activity shows that the REA model addresses a real need in […]
Genesis College, one of the largest private educational institutions in Romania, announced the regulatory approval of the transaction through which the investment firm Mozaik Investments becomes its majority shareholder. The transaction, signed at the end of July, received all necessary approvals from the Competition Council on November 25, and, formally, the entire investment procedure is […]
