On Thursday, the European Commission estimated that the growth rate of Romanian economy slowed down by 1.8% in 2023, 0.4% less than estimated in the fall, when the high inflation and slow credit growth affected domestic demand, while foreign demand was very low, according to winter economic provisions released on Thursday by EC. The Commission also reviewed estimates referring to the advance of Romanian economy in 2024 to 2.9% from 3.1% as foreseen in the fall of 2023. Although private consumption is expected to increase, investments will remain the main contributor to GDP increase this year. Monetary policy is expected to be a restrictive one in 2024 and will relax only gradually when inflation pressure drops. The relaxation of financial and monetary conditions, accompanied by a higher foreign demand will lead to a real GDP increase of 3.2% in 2025, somewhat less than autumn prognosis, the EC report shows. Concerning inflation, EC estimates that in 2023 it dropped to 9.7% from 12% in 2022, mainly due to the significant slowdown of private credit increase and strict monetary conditions, as well as lower energy and food prices. Except for a short period at the beginning of 2024, following some increase of indirect taxes, prices will continue to drop. Average annual inflation is foreseen to reach 5.8% in 2024 in order to slow down to 3.6% in 2025,”EC estimates, warning that there are risks of a disinflation process more gradual in case salaries and pensions continue to grow rapidly. The European Commission publishes two sets of detailed provisions every year, in the spring and autumn and two sets of intermediate provisions in winter and summer. Intermediate provisions include annual and quarterly GDP and inflation values of all member states for the on-going and future years, as well as data for the EU and euro areas.
The countdown is on until the start of the largest local fest, Transilvania International Film Festival on 13 June. Or, as everyone calls it: TIFF. To pass the time and (or) have an alternative, do not miss some of the most entertaining stories of all time courtesy of suspense master Alfred Hitchcock. And check out […]
Roughly 45.7% of Romanians believe the country’s May presidential elections were rather unfairly organized, while 50.4% believe they were fair, according to a survey by INSCOP Research. Romania's previous presidential elections, which saw centrist Bucharest mayor Nicusor Dan emerge victorious, saw extreme polarization. Immediately after...
CARFIL Brasov, central Romania, is set to begin production of three types of Romanian military UAVs this year, news agency Agerpres reported. The drones, named Cuda, Sirin, and a marine drone, were unveiled at the Southeast Europe Special Operations Forces Forum 2025 (SEESOF) in Targu Mures, the first international expo-forum dedicated to the special operations forces. ...
The National Meteorological Administration of Romania, or ANM, aims to become a European regional hub for professional training in the field of climate change, according to director general Elena Mateescu. The official noted during “The Future of Agriculture” forum held on Thursday, June 5, that the ANM has already completed the European Agrometeorology Center, which […]
Romania’s Interior Ministry (MAI) and Defense Ministry (MApN) have warned of ongoing disinformation campaigns on social media aimed at manipulating public opinion. The latest wave of false claims includes reports about the imposition of martial law and border closures, seeking to heighten public anxiety over the risk of war. Romanians, whether abroad or within the […]
The International Monetary Fund (IMF) issued new recommendations to Romania, among which is an increase in VAT, but also excise duties, dividend taxes, and the introduction of two income tax rates of 15% and 25%. At the same time, it recommends the reduction or elimination of the health insurance contribution, as well as a change in […]
