Economic growth is expected to decelerate noticeably more pronounced in 2023 than previously anticipated - against the background of high costs, the decrease in external demand and the conduct of monetary policy - and to recover only slightly in 2024, but more accentuated in 2025, according to the Minutes of the meeting of monetary policy of the Board of Directors of the National Bank of Romania (BNR) from November 8, 2023.According to the source, significant uncertainties and risks continue to arise from the future conduct of fiscal and revenue policy, the members of the Council agreed, referring to the recent steps aimed at limiting budget expenditures in 2023 and to the possible addition in the following years of the package of fiscal measures- corrective budgets - including from the perspective of the commitments assumed within the excessive deficit procedure and the conditions attached to other agreements concluded with the European Commission, but also to the potential implications of new legislation regarding pensions and salaries in the public sector, as well as to possible new salary increases granted to public staff."In this context, the members of the Council emphasized once again the importance of the attraction and efficient use of European funds, especially those related to the Next Generation EU program, which are essential for achieving the necessary structural reforms and the energy transition, as well as for increasing the potential for growth and strengthening the resilience of the Romanian economy. At the same time, significant uncertainties and risks were highlighted regarding the economic activity perspective, implicitly the medium-term evolution of inflation, generated by the war in Ukraine and the conflict in the Middle East, as well as by the economic developments below expectations in Europe, especially from Germany," the document states.
The Ministry of Development proposed to the government to analyse the opportunity to develop an investment program dedicated to the economic recovery of small towns with a population of under 25,000 in non-metropolitan areas. The financial support for the development of these towns has been so far fragmented, and competition with large cities for funds proved […]
Prime minister Ilie Bolojan said on November 6 that he hopes that the ruling coalition will manage to legislate by the end of this month the rest of the second package of budgetary measures, namely the public administration streamlining law and the law on magistrates' pensions. Unless the law on the public administration is legislated, […]
Japanese group Makita announced that it will reduce production of power tools in China for the US market due to the unpredictability of US tariffs and move this production to factories in Romania and Thailand, according to Nikkei Asia, as reported by Economica.net. The Japanese group reported business of almost EUR 640 million locally...
The Competition Council has outlined a series of concerns related to the transaction through which the Schwarz group, which operates the Kaufland and Lidl store chains in Romania, intends to take over the La Cocoș stores, according to a press release quoted by
Romania’s flag carrier, Tarom, has requested the government to disburse a new tranche of restructuring state aid approved in 2024 to address the current liquidity deficit, Profit.ro reported. The company argued that, because of late payment penalties...
Retail sales volume contracted by 2.3% q/q in Q3, resulting in a 0.3% y/y decline in Romania (the second negative reading since the Covid-19 pandemic), visibly dragged down by the real wages that contracted by 3.7% y/y in July-August (latest data available) after +2.2% y/y in Q2, +4.6% y/y in Q1 and around 9%-10% y/y […]
