Experts of Romania's chartered financial analysts association CFA Romania put their budget deficit estimates at 7 percent of GDP in 2021 and 5.7 percent in 2022, projecting also an inflation rate of 6.06 percent over a 12-month horizon and a public debt expansion to 52.5 percent of GDP, the organization said in a release on Wednesday.Additional questions regarding the impact of the coronavirus crisis on the national economy (the duration of the pandemic's economic impact, the GDP and budget deficit evolution) have been included in the survey conducted by CFA Romania.Thus, the average projection for the 2021 state budget deficit is 7 percent, and 5.7 percent for 2022. The average projection for the nominal GDP growth in 2021 is +6.6 percent, and 4.3 percent for 2022. Also, the public debt (as percentage of GDP) is seen at about 52.5 percent over a 12-month horizon.The majority of survey participants, 36 percent, predict the coronavirus economic impact to last until at least the second quarter of 2023."Amid the substantial increase of the inflation rate, inflation expectations for a 12-month horizon continued to rise, reaching a new all-time high (of the CFA Romania Association survey). Moreover, the high dispersion of the responses is indicative of the high uncertainty regarding the evolution of inflation next year. In line with inflationary expectations and the central bank's monetary policy measures, expectations of an increase in interest rates on both the money market and for government securities have also increased," said vice president of the CFA Romania Association Adrian Codirlasu.CFA Romania's Macroeconomic Confidence Indicator increased slightly to 57.6 points (compared to the same month of the previous year the increase was of 7.2 points) due to the divergent evolution of the two components of the indicator. The anticipated inflation rate for the 12-month horizon continued to go up, averaging at 6.06 percent.Regarding the euro to RON exchange rate, all survey participants (100 percent) predict a depreciation of the RON in the next 12 months (from the current value). Thus, the average 6-month projection for the exchange rate is 5.0284, while the average exchange rate expected over a 12-month horizon is 5.0859 RON for one euro. The lowest estimated euro to RON exchange rate is 4.9700.CFA Romania is the association of Romanian investment professionals who hold the certification of Chartered Financial Analyst (CFAŽ), a credential granted by the US-based CFA Institute. CFA Romania is one of the over 160 CFA Institute members, and has the mission to promote the interests of investment experts and maintain high standards of integrity and professional excellence. The association currently has over 250 members.
The European Commission (EC) announced on Thursday, December 11, that it is referring Romania to the Court of Justice of the European Union (CJEU) for failing to meet obligations under Ambient Air Quality Directives. According to the Commission, Romania has not ensured that its national air quality monitoring network complies with legally required standards on […]
The Bucharest Court of Appeal (CAB) held an unprecedented press conference on Thursday, December 11, in response to allegations raised in a recent media investigation published by Recorder, with court president Liana Arsenie firmly rejecting the claims. However, at the start of the press event, a judge from within the institution publicly stated that the […]
Romania’s Superior Council of Magistracy (CSM) issued its first response to the Recorder documentary alleging systemic manipulation within the justice system, calling the investigation an amplification of a “campaign to destabilize judicial authority.” The council said on Thursday, December 11, that it will evaluate what measures need to be taken following the report. In a […]
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The Buzău Land UNESCO Global Geopark in Romania has become a “living laboratory” this week as a team of American researchers arrived to study microorganisms capable of surviving in extreme environments. The scientists, part of the interdisciplinary research organisation The Two Frontiers Project, are examining methane seeps, sulfur and petroleum springs, saline sources, and other […]
A moose has been unexpectedly spotted in the Hunedoara county area, specialists from the conservation group Rewilding Romania announced on Wednesday, December 10, sharing footage of the animal on social media. The sighting is considered “an important discovery for Romania’s wildlife,” though experts caution that it remains unclear how the animal reached this region. According […]
