RIGA - Leaders of Latvia, Lithuania, Estonia, Poland and Romania in a joint letter to European Council President Charles Michel, European Commis......
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.
TALLINN - Estonian Prime Minister Kaja Kallas has signed a joint letter by Estonia, Latvia, Lithuania, Poland and Romania to heads of EU institu......
Romania's gas imports in the first four months of 2022 stood at 802,800 tons of oil equivalent (toe), by 5.1 pct (51,900 toe) less YoY, show figures centralized by the National Institute of Statistics (INS).The domestic gas production over the reporting period amounted to 2.376 million toe, 6.1 percent (153,700 toe) less than in the […]
President Klaus Iohannis will attend European Union and Western Balkans leaders' meetings on Thursday and Friday, the European Council meeting and the extended Euro Summit in Brussels, the Presidential Administration has announced.According to the quoted source, the meeting of the leaders of the European Union and the Western Balkans will be an opportunity to reaffirm, […]
On a working visit to the United Arab Emirates (UAE), Romania's Prime Minister Nicolae Ciuca met UAE President Sheikh Mohamed bin Zayed Al Nahyan to discuss diversifying oil and gas supply resources amidst ongoing tensions in the Black Sea region.According to a press statement released by the government on Wednesday, Prime Minister Nicolae Ciuca paid […]
Minister of Foreign Affairs Bogdan Aurescu on Wednesday expressed the "firm interest" for continuing the development of collaboration in areas of importance for Romania and the United Arab Emirates, namely economic, commercial, maritime and air transport, energy, IT&C, cyber security, agriculture and food security, environment and aerospace research, at the 2nd session of the […]