May 15, 2024

A roundup of local and international news.

Newsroom, 15.05.2024, 13:43

Inflation. The National Bank of Romania has revised its inflation forecast for the end of the year up to 4.9% from 4.7% previously and says the inflation rate may go down to 3.5% at the end of 2025, according to a report presented today by the bank’s governor, Mugur Isărescu. The latter said the inflation rate will continue to drop, but at a slower pace than the initial estimate. The main uncertainties and risks associated with the evolution of the inflation rate have to do with the high budget deficit, the salary dynamics and possible additional fiscal and budgetary measures needed to cut down expenses. The latest statistical data show a slight drop in the inflation rate from 6.61% in March to 5.9% in April. The National Bank has decided to maintain the monetary policy interest rate at 7%, unchanged since last year.

Economy. In the first quarter of the year, Romania’s GDP grew by 0.5% compared with the previous quarter and by 0.1% compared with the same quarter in 2023, according to data published by the National Institute for Statistics. The European Bank for Reconstruction and Development (EBRD) has not changed its forecast with respect to the evolution of the Romanian economy this year and warns that the main vulnerability remains the fiscal position, given that the deficit level reached 5.9% of GDP in 2023, according to a report published by the EBRD today. In its latest forecast, the EBRD estimated that Romania’s GDP may grow by 3.2% this year and by 3.4% next year. According to the EBRD, the growth pace of the Romanian economy slowed significantly last year, to 2.1%, despite being one the best in the region. However, the drop in private consumption in the context of high inflation was counteracted by an uptick in investments and in government expenditure. Public expenditure is expected to grow further amid an increase in public sector salaries and pensions, thus creating the risk for an even bigger deficit level this year, the EBRD warns.

Law. Motorists caught drunk driving or driving under the influence of drugs can see their driving permits suspended for up to 10 years, under a new law passed by the Chamber of Deputies on Tuesday. Also, they will no longer be able to delay serving their prison sentence. The bill was initiated in the aftermath of an accident that took place in the 2 Mai Black Sea resort in which two young people were killed after being hit by a driver who had used drugs. The Chamber of Deputies also passed legislation obliging people who are fleeing abroad to evade serving time in prison to cover the extradition costs.

Football. Otelul Galati and Corvinul Hunedoara are today playing the Romanian Football Cup final. Whoever wins, it will be their first time holding this trophy. The championship title went this year to the Bucharest side FCSB. CFR Cluj and CSU Craiova are vying for the second and third places, which would allow them to play in the European competitions.