Romania's economy will grow by 4% this year, and the growth will slow down to 3.5% in 2023 as the central bank will have to rise the refinancing rate to 7% by the end of this year (versus the 8%-9% ideal rate of the refinancing rate), according to a research report published by OTP Bank Romania. The fiscal consolidation has stalled and will resume maybe next year, while the current account (CA) deficit may exceed expectations this year amid high energy prices and slower fiscal consolidation, the report reads, concluding that the twin deficit issue remains relevant. "In a regional context, the comparison suggests a more optimistic average growth performance for Romania. Although, for next year, the prediction is pessimistic, with a lower expected result. At the moment, all areas are affected, given inflation - trade, real income, interest rates or fiscal consolidation, which has stalled at this time. [...] The positive outlook is also complemented by the fact that Romania is expected to receive European funds of about 3.5% of GDP annually in this forecast horizon," OTP Bank analysts argue, quoted by Bankingnews.ro. "Under the baseline scenario, inflation could peak in June at a level slightly below 15%, but in the period to come, the decline will be slow, and we should be prepared not to see single-digit rates until March next year. Energy and food growth are now passing through to core inflation [...]. In addition, we can anticipate another increase in the price of energy for household use in April next year, when the current cap-and-subsidy scheme expires," the report reads. OTP Bank expects the National Bank of Romania to conduct more hawkish policy towards the end of the year, yet along the line of moderation followed so far. "The current level of the key policy rate, of 3.75%, still lags very much behind the evolutions of the inflation and the risk premium for the Romanian assets and it is very likely to see it increasing to 7.0% by the end of the year, while the market suggests a level of 8-9%," according to bank analysts' expectations.
Mobility company Bolt has launched a new category in Bucharest called Little Bolt, offering passengers cheaper rides in compact electric vehicles. The company says the move supports its plan to reach net-zero carbon emissions by 2040. The new vehicles, which Bolt says are Jinpeng Smart Balance models, can reach speeds of up to 70 km/h […]
The Ministry of Foreign Affairs (MAE) announced the resumption of consular activities in Odesa through an itinerant format, as part of efforts to reopen the Romanian Consulate General and provide consular assistance and protection to Romanian citizens in the region. Thus, between October 16 and 28, an interim chargé d’affaires is conducting the first itinerant […]
ONV LAW launches Digital Assets & Web3 (Code/Lex), a new practice area dedicated to technology companies and investors operating in cryptoassets, blockchain, and AI. The ONV LAW team provides integrated legal support to technology companies, blockchain startups, Fintechs, AI solution providers, as well as investors seeking expansion in Eastern Europe. The team is led by […]
Over 10,000 Romanian children were born in Italy in 2024, contributing the most to the birth rate in the peninsula, relative to the number of people, Digi24 reported. The 2024 birth rate is Italy’s lowest in the past century. A historic low of fewer than 370,000 children were born last year on Italian territory. ...
The Ministry of Development announced that it will finance the reconstruction of the apartment building on Calea Rahovei in Bucharest, which was destroyed by the explosion on October 17 that killed three people and injured 15 others. In this sense, the ministry has published for public consultation a draft emergency ordinance that expands the scope […]
DocProcess, the technology company founded by Romanian entrepreneurs Daniela and Liviu Apolozan and recently integrated into the French group AGENA3000, announced the appointment of Jacky Huet as general manager of DocProcess Romania. With more than 30 years of experience in the software industry across EMEA and America, he brings extensive expertise in domains such as […]
