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.
The health sector, public administration, and the energy industry are the most targeted by cyber threats in Romania, according to the National Cyber Security Directorate (DNSC) in its 2024 activity report. The health sector faces significant threats due to the large volume of sensitive data and underfunded critical infrastructure. Public administration is often the target […]
The funeral service of Romanian former president Ion Iliescu was performed on Thursday, August 7, an official mourning day in Bucharest. Among those present were family, friends, former allies, and political opponents. Those absent, namely the former president Klaus Iohannis and current president Nicusor Dan, were also notable. Ion Iliescu, Romania’s first president after the […]
The multisensory photography exhibition World Unseen has opened to the public in Brașov, central Romania, as part of its national tour. Hosted at Olimpia – The Museum of Sport and Mountain Tourism, the exhibition is open until September 14 and aims to make photography accessible to people of all abilities, including those with visual impairments […]
Romanian foreign minister Oana Țoiu began an official visit to Ukraine on Thursday, August 7, marking the first bilateral trip by a Romanian foreign minister to Kyiv since the Russian invasion in 2022. The visit signals Romania's strong and ongoing solidarity with Ukraine, the ministry said. Minister Țoiu is scheduled to hold high-level talks with […]
M Core continues to expand its Romanian portfolio with a new retail development in Bucharest. This time, the project is targeting one of the city’s most dynamic residential areas — Prelungirea Ghencea. The project, developed on a plot of approximately 51,400 sqm, will be located on Prelungirea Ghencea Street, no. 344–348, and is currently in […]
The FeminEast Association has launched the first free digital platform dedicated exclusively to financial education for women and young girls in Romania and Eastern Europe. Designed to address persistent gaps in financial literacy, the platform offers accessible, practical content tailored to the needs of schoolgirls, students, mothers, and women seeking financial independence or career changes. […]
