Romania recorded a slight improvement in the economic sentiment indicator (ESI) in December 2023, according to an Erste Group report. The ESI climbed from 101.9 in November 2023 to 102.4, primarily due to increased confidence in the services and retail sectors. However, the industrial sector reported a decline in confidence, while the construction sector recorded a slight upturn. This trend was also reflected in the pan-European ESI, which mirrored Romania’s recovery and rose from 101.9 to 102.4. Experts had expected the economy to rebound in the last quarter of the year and the ESI values were in line with these expectations. The average ESI for Q4 2023 was 101.9, exceeding the previous quarter’s average of 100.7. Forecasts suggest that retail sales could grow again in Q4 2023. Factors such as robust nominal wage growth, falling inflation rates, a stable unemployment rate and continued job creation should provide some relief for consumers in the coming quarters. Looking ahead to the new year, forecasts point to a recovery in GDP expansion, which is expected to increase by 3.3% compared to the estimated 2.1% in 2023. This expected growth is attributed to stronger domestic demand. Investment is expected to continue to support growth in 2024, but the inflow of EU funds could contribute more slowly compared to 2023. The sustainability of private consumption is expected to be supported by lagged effects resulting from significant real wage increases. However, the risks to the growth outlook for 2024 remain tilted to the downside. Factors contributing to this risk include potential delays in the absorption of EU funds, weakened consumer confidence amid a busy election calendar in 2024 and higher than expected inflation rates. In terms of sector-specific sentiment shifts, manufacturing confidence witnessed a slight decrease, primarily influenced by a pessimistic outlook on expected business production despite stable order book levels and slightly lower inventories. Conversely, the services sector experienced a surge in confidence with a significant increase in both past and expected demand. However, this increase was counteracted by a slight decline in the assessment of the current business situation.Sentiment in the construction industry improved slightly, as construction companies’ assessment of the order backlog and expected employment increased slightly. Retailers were also more confident in December, which can be attributed to expected future business activity and the reduction in inventories. However, previous business activity declined slightly in the same period. In addition, the Employment Expectations Indicator (EEI) across all four sectors recorded an increase to 106.2 in December from 102.5 in November. The retail sector recorded the strongest monthly change, indicating a better employment outlook. Managers expect prices to rise in all sectors except the service sector, where prices are expected to remain stable. As Romania navigates these mixed sentiments across sectors, the landscape for economic growth in the coming months remains uncertain, influenced by both domestic and international factors.
The SIGNAL IDUNA companies concluded 2024 with a total gross written premium volume of approximately RON 424 million, marking an aggregated growth of 16% compared to the previous year. These financial results reflect the consolidation of a sustainable development strategy, supported by portfolio expansion, digitalization, the launch of new solutions for both individual and corporate […]
Kantar Romania launched, during an event dedicated to their clients, "The Trust Factor – Building Brands That Endure Uncertainty", the top 20 brands that manage to inspire the greatest confidence among the Romanian consumers, based on the analysis of 162 brands from 12 sectors*. In a period marked by uncertainty and skepticism, trust becomes the […]
Balancing career success with personal growth is a challenge many professionals face today. As the pressure to achieve and perform increases, many begin to crave more than just success: they want clarity, alignment, and a deeper sense of purpose. For Lin Holmquist, business coach and one of Europe’s most acclaimed experts in Tantra, Yoga, and […]
CFR Călători, the state-owned railway company for passengers, announced that the first train entirely made up of rolling stock modernized with funds from the EU-backed Recovery and Resilience Fund (PNRR) was introduced on the Bucharest North – Constanța route. The train, which is already running, consists of a locomotive delivered by the Softronic factory in […]
The first edition of Urban Habits (nUH), a festival aiming to be “a space for ideas, debates, co-creation, and experimentation,” takes place between April 26 and April 27 at Lokal and on Erou Ion Călin Street, which will be temporarily transformed into a pedestrian space. The program will address themes ranging from innovation, design, and […]
Mall Moldova, the largest shopping center in the Moldova region, officially opened on April 17 in Iași, covering 110,000 sqm. Developed by Prime Kapital, in partnership with MAS P.L.C., Mall Moldova is part of a large-scale investment plan carried out by the two investors in Iași, worth approximately half a billion euros, which also includes […]
