In its Regional Economic Prospects report of May 2022 released on Tuesday, the European Bank for Reconstruction and Development (EBRD) says that after a rebound of 5.9% Gross Domestic Product (GDP) growth in 2021, the rate of the Romanian economy's growth will slow down significantly in 2022.Romania's economy is projected to grow by 2.5% this year, as against 2.8% forecast in March 2022, and 3% next year, as against an initial forecast of 4.1%.According to the EBRD, the Romanian economy entered 2022 on a weak footing as GDP declined in the last quarter of 2021 by 0.1% quarter-on-quarter due to a fall in investment and slowing inventory build-up."Accelerating inflation from the second half of 2021 has already put pressure on consumers and firms. While real net wages have temporarily recovered in early 2022 and the removal of Covid-19 restrictions has improved confidence, the war on Ukraine has brought an additional layer of inflationary and supply chain difficulties," according to the EBRD report.Consumer prices increased by 10.2 per cent, year-on-year, in March 2022, despite a cap on energy prices, which is set to remain until March 2023. The government has adopted a range of measures to support vulnerable households and firms affected by the war. As such, the fiscal consolidation envisaged for this year could be constrained by these expenses and by weaker economic growth, warns the international financial institution.The National Bank of Romania (BNR) has raised the policy rate to 3% by April 2022 and, facing a tightening of liquidity since the start of the war, has intervened in the secondary market for sovereign debt to calm debt markets.GDP is projected to grow by 2.5% this year, with risks tilted to the downside and contingent on the evolution of the war and other supply pressures. In 2023, lingering inflation pressures, fading pent-up demand and supply chain issues are expected to restrain growth to a forecast 3%, the EBRD report says.
The third breast milk bank in Romania has opened at the Sibiu County Hospital, following a RON 13.5 million (about EUR 2.7 million) investment aimed at modernizing the hospital’s neonatology department. The modernization project, financed through the National Recovery and Resilience Plan, included the replacement of old equipment, a 20% increase in the number of […]
President Nicuşor Dan stated on Wednesday, July 30, in a press conference that the current system, which allows magistrates to retire under the age of 50 with a pension higher than their salary, is absurd. He also criticized the Superior Council of Magistracy, or CSM, for the current “disorderly” state of the Romanian justice system. […]
Forty Romanian firefighters and eight fire trucks left for Greece on Wednesday, July 30, to participate in firefighting missions, the General Inspectorate for Emergency Situations said. Between August 1 and September 15, Romania will take part in the Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) program aiming to support the Greek […]
Integrated facility and property management services provider Nazca has opened its first office outside Italy, its domestic market, in Bucharest. Nazca expects revenues of over EUR 1 million next year in Romania, and in the next 3 years, the growth plan aims to reach EUR 10 million, with target sectors being office buildings, retail, industrial […]
The 19th edition of TIFF Sibiu, one of the local editions of the Transilvania International Film Festival (TIFF), the largest film event in the county, will present a program of international films and the latest productions by Romanian fillmakers, who will attend the event. The festival takes place between August 7 and August 10, with […]
Moldovan carrier Flyone will add a route between Bucharest and Munich starting in October. The flights to Munich will be operated on Mondays, Wednesdays, and Fridays. This adds to the flights it has connecting the Romanian capital to Tel Aviv, Brussels, and Verona. With these routes, the airline is responding to the constant demand from […]
