In the opening month of 2024, Romania’s Economic Sentiment Indicator (ESI) showed marginal stability, inching down slightly to 102.3 compared to December’s reading of 102.4, according to a recent report from Erste Group. The nuanced shifts in sentiment were reflected across various sectors, offering a diverse outlook for the nation’s economic landscape. Employment Expectations Ease, GDP Eyes a Rebound The Employment Expectations Indicator (EEI) witnessed a dip to 103.3 in January from December’s 106.1. This aligns with actual employment data indicating a plateau in workforce expansion since last autumn. Despite this, Erste Group projects a rebound in GDP growth, forecasting a rise to 3.3% in 2024 from the 2.1% recorded in 2023. Key drivers for this anticipated growth include robust real wage increases, favorable labor market conditions, and positive spillover effects from past state investments. Sectoral Insights: Manufacturing, Services, Retail, and Construction In the manufacturing sector, confidence saw a decline to -0.5 in January compared to December’s -0.3. This downturn was attributed to shrinking production expectations, possibly influenced by weakened domestic demand. Nevertheless, a silver lining emerged with an improvement in export order books in January. The sector’s capacity utilization surged to 71.3%, reflecting a notable increase from October’s 66.5%. Erste Group maintains a cautious optimism, expecting a modest recovery in manufacturing throughout 2024 after facing challenges in the preceding years. Services confidence took a hit, dropping to 4.4 in January from December’s 5.4. The decrease was linked to lower consumer demand in the past and anticipated challenges in the next three months. On a brighter note, retail trade confidence exhibited improvement, climbing to 11.1 in January from 8.8 in December. Both backward-looking and forward-looking components contributed to this positive shift, indicating a potential boost in consumer activity in the coming months. Construction sentiment, however, saw a decline, registering -6.6 in January compared to December’s -6.4. This dip raises questions about the sector’s short-term outlook. Inflationary Pressures Across Sectors An overarching trend across all sectors surveyed is the rise in selling-price expectations. This suggests growing inflationary pressures, impacting manufacturing, services, retail, and construction. In conclusion, as Romania navigates the complexities of economic sentiment, Erste Group’s report hints at both challenges and opportunities. While some sectors face headwinds, there is an overall expectation of a measured recovery in 2024, guided by various economic factors and cautious optimism. As the year unfolds, stakeholders will keenly observe how these dynamics shape Romania’s economic trajectory.
Haleon, a global leader in consumer health, has appointed Wael Kaskas as General Manager for its Hungary, Romania, Czechia, and Slovakia cluster. With a strong background in FMCG, consumer healthcare, and supermarket retail, Kaskas brings extensive experience in managing billion-dollar portfolios and leading business transformations, the company said. Before this role, Kaskas was responsible for […]
Vadoo Fest returns on August 21–24 to the meadows of Vadu Oii, Buzău County, with a new edition that invites participants to slow down and reconnect. Now in its seventh year, the festival promises a special experience rooted in nature, music, and human connection. This year’s line-up blends depth and groove, featuring Grammy-winner Judith Hill, […]
LIBERTY Galați, Romania’s largest steel producer, is undergoing significant leadership changes as part of its broader restructuring efforts aimed at improving operational performance. The company has initiated a global executive search to appoint a new permanent General Manager and has made several key interim and permanent leadership appointments. Radu Ionescu is stepping down as General […]
A major player in the private equity market in the Baltic region, the INVL Baltic Sea Growth Fund, announced on Monday, July 14, that it has completed the investment in Pehart Group, a leading producer of household and industrial paper products in Romania, a deal valued at EUR 150 million. With a 187-year tradition, Pehart […]
Cyclists will be able to cross the border between Romania and Serbia between July 26-28 on a 37-kilometer route that starts in Timișoara and follows the course of the Bega River to the Serbian border. The Otelec border crossing point will allow the cyclists to cross the border. The bike path will be accessible between […]
With EUR 12.9 billion in direct investments and 125,000 jobs generated, France ranks as the third largest foreign investor in Romania, according to the French Chamber of Commerce, Industry and Agriculture in Romania (CCIFER). The French business community includes 600 members, ranging from major corporations to startups, universities, and NGOs. In 2024, bilateral trade between […]
