Uncertainties arising from the recent fiscal measures adopted by the authorities have adversely affected the confidence of the business environment, says Ramona Jurubita, KPMG Romania Country Managing Partner, as cited in a company release."Romania's future growth potential remains high and this can be fully exploited in a framework where fiscal and legislative policies are predictable, and by laying emphasis on the improvement of the country's infrastructure. However, the uncertainties related to the fiscal measures recently adopted by the authorities have adversely affected the confidence of the business environment. The increase in the VAT rate for certain goods and services and the higher excise duties on fuels, the introduction of new taxes, including the minimum turnover tax for large companies and the additional taxes for credit institutions, along with increased tax rates on turnover are expected to push inflation in 2024 on a higher trajectory than initially anticipated and, in addition, to negatively affect demand. Despite significant investments supported from European funds, there is a big question mark related to how these fiscal changes will influence both economic growth and macroeconomic imbalances in the short term," said Ramona Jurubita.According to the KPMG Global Economic Outlook report, Romania's short term economic prospects are influenced by uncertainties related to the correction methods of both the budget deficit and the current account deficit.After witnessing a strong growth of 5 percent in the first three quarters of 2022, the Romanian economy saw a sharp slowdown, advancing just 1.4 percent in the same period of 2023. High inflation eroded the households' purchasing power and acted as a headwind to private consumption, which had been the main driver of economic growth in recent years. Even so, Romania's economy had one of the highest growth rates in the region, estimated at 1.8 percent in 2023.Romania's economic growth outpaced that of the countries in the region, despite the ongoing conflict at the border with Ukraine. The average annual inflation rate continued to decrease in 2023, and this trend is expected to continue in 2024 and inflation to reach approximately 6.9 percent.
Romania's interior minister, Cătălin Predoiu, expressed cautious optimism about the country's prospects for full Schengen accession following a meeting scheduled for November 22 with Austrian interior minister Gerhard Karner. Speaking on local news channel Antena 3, Predoiu stated that "the pieces are quite well placed" for progress on accession with land borders,
Romgaz (BVB: SNG), the largest producer and main supplier of natural gas in Romania, will list its first bond issue, worth EUR 500 million and aimed to finance the Neptun Deep offshore gas project, on the Bucharest Stock Exchange on November 19. In October, Romgaz issued the first EUR 500 million tranche of a EUR […]
Left without heating after a coal-fired unit at Electrocentrale Craiova broke down, Ford Otosan’s automobile plant in southern Romania ceased operations on November 13, Profit.ro reported. The losses at the factory that is producing some 1,000 automobiles and 1,700 EcoBoost...
Bucharest Exchange-listed Premier Energy Group, active in the renewable electricity generation and energy supply activities in Romania and Moldova, announced its revenues rose by 25% y/y to EUR 816 million in January-September and by 61% y/y to EUR 303 million in Q3 alone, driven by both organic performance and strategic acquisitions. The net profit, however, shrunk […]
Romania's leading energy producer, Hidroelectrica (BVB: H2O), announced its output decreased by 22% y/y to 11.35TWh in January-September, citing both market conditions (a change in the regulations that resulted in volatile prices and volumes traded) and adverse hydrological conditions. The revenues contracted by 25% y/y to RON 7.2 billion (EUR 1.44 billion), roughly in line […]
Lower electricity production amid slightly higher domestic demand and the reliance on intermittent renewable resources led to increasingly more situations when Romania imports electricity at the maximum capacity of its interconnectors, although the net electricity deficit is in the range of only some 3% of total consumption. The power storage capacities can smooth supply and […]
