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.
President Nicușor Dan has nominated Senate president Ilie Bolojan, a leader of the National Liberal Party (PNL) and former interim president, for the prime minister seat. Dan said Bolojan is “the best person to carry out the needed adjustments in the state administration.” He pointed to Bolojan’s track record with reducing spending, and said he has […]
Balkanik Festival – Home of World Music, set to take place at Uranus Garden between September 5 and September 7, lines up this year artists who "celebrate that form of joy that does not ignore reality, but faces it with beauty, energy, and solidarity," the organizers said. The artists performing in September in Bucharest will […]
The mayor of Timișoara, Dominic Fritz, announced on Friday, June 20, that two new bridges over the Bega River will be built in the city. The bridges will be financed with EU-backed funds worth over RON 130 million. The bridges in question are the Solventul Bridge, which will connect Gării Street to Dâmbovița Boulevard and […]
A Sarmatian necropolis nearly 2,000 years old was discovered after archaeological excavations were carried out at the Mehala II site in the municipality of Timișoara, in western Romania. Researchers discovered 15 inhumation graves, most arranged in rectangular pits with rounded corners, although some no longer retain their original outline, having been disturbed by the passage […]
The George Enescu Philharmonic Orchestra will deliver on June 26 a concert marking Romania Day at the Osaka World Expo. Additionally, the Bucharest-based orchestra will present a series of other concerts and recitals, both within the Romanian Pavilion and outside, at Toyonara Hall in Osaka. The George Enescu Philharmonic Orchestra's concerts will be conducted by […]
Sphera Franchise Group, the largest food service group in Romania, has opened its first Cioccolatitaliani store in the seaside resort of Riccione, in Italy’s Rimini tourist area. This marks the official launch of Sphera Group’s development plan for the premium Italian brand of coffee, gelato, and pastry. Under the plan, it will open four locations […]
