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.
East Grain Group and Poultry Investment SA have acquired the 45% stake previously held by UBM Group in UBM Feed Romania, thus becoming equal shareholders in one of Romania's largest feed producers, which will now operate under the brand Protena. East Grain is controlled by Czech agri-food group Agrofert, one of the largest agribusiness groups […]
The Foreign Investors Council (FIC) has appointed Ruxandra Băndilă as its executive director. Băndilă will coordinate FIC's activity and "will contribute to strengthening the dialogue with authorities, consolidating the organization's positioning as a reliable partner in promoting a stable and predictable business environment, as well as supporting Romania's becoming a competitive and attractive destination for […]
Romania’s European projects and investments minister, Dragoș Pîslaru, announced that he will notify the European Public Prosecutor’s Office (EPPO) regarding the purchase of electric minibuses for students with EU funds. The minister said that “multiple dysfunctions” were noted in how the EU funds were used in the project. Aside from notifying the EPPO, the minister […]
Only about 44% of employees in Romania say they have used AI in the past year, while the average usage rate in the 48 countries included in the report was 57%, according to the PwC Workforce Hopes and Fears Survey 2025 report. India and Vietnam are at the top, with 84%, followed by China (78%). […]
A new four-star hotel is set to rise next to Bucharest’s Henri Coandă International Airport, following a EUR 45.5 million investment announced by real estate developer D. GROUP. The Wyndham Garden Bucharest Airport Hotel, scheduled to open in July 2027, will introduce the Wyndham Garden brand to Romania for the first time. Located 150 metres […]
Romania ranks 3rd in a European heatwave vulnerability ranking and will experience 3 heatwave events annually, lasting 17 cumulative days with average temperatures of 36.82°C, placing it ahead of all Mediterranean countries, according to new research from climate system experts at Reinders Corporation. The study analysed climate modelling data, heatwave frequency, and average temperatures across […]
