Economy 
Ernst & Young: Romanian Economy Will Grow 1% In 2011
According to a report by Ernst & Young, Romania’s GDP is expected to grow by 1% this year, mostly driven by exports, but domestic demand remains subdued. The authorities forecast an economic growth of 1.5% in 2011. The report also states that the economy is likely to grow up to 4% in 2012, as investments and local demand are expected to pick up. Ernst & Young analysts consider it is highly unlikely that Romania will be able to reduce its budget deficit to 3% of the gross domestic product by 2015. citeste mai mult
Romanian Prime Minister Invites Union Leaders For Talks
Government spokeswoman Ioana Muntean announced today that Romanian Prime Minister Emil Boc has invited union leaders at the Government’s headquarters at 4 p.m. to discuss their claims. Labor and economy ministers will also attend the meeting. Around 5,000 unionists have gathered outside the Government building, from where they will march past the headquarters of ministries of Economy, Labor, Interior, Health and Agriculture, in protest to austerity measures including public sector layoffs and wage cuts. Ahead of the protest, labor minister had invited union leaders for talks, but they declined saying the protest shall take place as planned and talks may be held afterwards. citeste mai mult
Romanian Government Announces For September New Measures to Boost Economy
Romanian Prime Minister Emil Boc announced on Saturday that, in September, the Government will promote a series of measures to uphold the country’s economy. Therefore, Emil Boc announced that the reinvested profit will not be taxed, young entrepreneurs will receive extra financial support from the state and the conditions that must be met by firms that hire unemployed people and make investments in order to get financial support will be eased. Regarding minimum wages, the Prime Minister said authorities still hold negotiations with unionists and employers and a decision will soon be made. According to the unionists, the public sector wage law will be revised in its entirety and will no longer be based on 2009's salaries, but on those of 2010, reduced through the austerity measures, and a new law will be issued every year to set the new wage level. citeste mai mult
State Monopoly - The Only Way To Ensure A Non-discriminating Access To Energy For All Companies
According to Romania’s Economy Minister Adriean Videanu, the state monopoly in the electricity transport represents the only way to ensure a non-discriminating access to energy for all companies. "Only the state can make fast investments to strengthen the energy system and to interconnect it with neighboring countries," Videanu told an energy seminar. The Minister also added that, despite the late reform, Romania's power sector remains attractive for potential investors. citeste mai mult
Romania’s Economy Ministery To Select Broker For Petrom Stake Sell By Mid-Sept
Romanian Economy Minister Adriean Videanu announced today that, in order to sell nearly 10% in leading oil company OMV Petrom (SNP.RO), a broker will be selected by mid-September. The transaction should be completed by year-end. Videanu said the ministry plans to pitch in to a EUR600 million share capital increase at OMV Petrom, but only after it sells part of its 20.64% stake in the oil company. Petrom, majority owned by Austria's OMV AG (OMV.VI), is the largest gas and oil producer in southeast Europe. citeste mai mult
IMF: Romania’s 2010 Economic Forecast To Be Revised
Jeffrey Franks, head of the IMF mission to Bucharest, announced that the financial institution will revise its forecast on Romanian economic growth for 2010. The official hinted that the revision will be more optimistic compared to a 3% contraction envisaged by the European Bank for Reconstruction and Development. "I'd say that EBRD's forecast is pessimistic," said Franks. In its latest forecast, the IMF said Romanian economy is expected to stagnate or decline by 0.5% this year, from a 7.1% contraction a year earlier. citeste mai mult
Romania Q1 GDP Down 0,3%, Fourth Largest Decline In EU
Romania’s economy registered a 0,3% quarterly fall, compared to the last three months of 2009. This is the forth widest decrease in the European Union. The EU's gross domestic product inched up 0.2% on the quarter. The highest quarterly economic growth in the EU was reported in Portugal (+1%), while Lithuania and Estonia saw the sharpest contractions, of 4.1% and 2.3% respectively. Compared with Q1 of 2009, Romania's GDP fell 2.5% in the January-March period, also the fourth biggest decline across EU state, EU's statistics office Eurostat said. citeste mai mult
Romania’s Economy Might Fall 0.5%-1% In 2010
Radu Craciun, investment manager with private pension fund Eureko Pensii Private, anticipates that Romanian economy will register a contraction this year too because a series of macroeconomic measures haven’t been applied yet. "Romania will not be able to report growth in the first quarter of the year and I expect negative yearend results, with a decrease between 0.5% and 1%, since a series of measures with a macroeconomic impact have yet to be applied," Craciun said. The analyst predicts that consumption would not grow as long as unemployment widens and lending revival is delayed. "Those who took out loans will not borrow again. In fact, people are trying to repay their loans as soon as possible, to relieve themselves of the payments. Lending might be resumed in the third quarter of this year," Craciun said. IMF recently reduced Romania's economic growth forecast this year to 0.8% from 1.3%. citeste mai mult
