We invite you to take a look at some of the main economic events in Romania in 2013.
According to the International Monetary Fund and the European Commission, 2013, another year defined by budget austerity in Romania, will end with a 2.2% economic growth rate, one of the biggest in the EU. In the first nine months of 2013 Romania’s economy went up by 2.7% as against the same period of 2012, mostly thanks to agriculture. The budget deficit will stand below the maximum level of 2.6% of the GDP, as stipulated in the agreement with the IMF, Bucharest authorities have announced. The budget execution after the first 10 months of this year ended in a deficit of 1.21 of the GDP and its final level by the end of December is unlikely to exceed 2.6%, Government representatives claim. The inflation rate has decreased quicker than expected, down to an estimated 2% this year.
On January 7th, 2013, the Board of the National Bank of Romania maintained the monetary policy interest rate at 5.25% per year. From July to November however, this rate was progressively decreased up to 4% per year. Anticipating the Central Bank’s decisions, analysts have estimated a drop in the key interest rate down to 3.75% next year. As for the mandatory minimum reserves for liabilities in lei, analysts say they might be slashed from 15% to 12% next year, while those in foreign currency will be maintained at 20%. “The gradual adjustment of monetary conditions is aimed at keeping at the same level, in a sustainable way, the prices for medium-term, in keeping with the stationary target level of 2.5%. This policy will help keeping inflation rate forecasts at a low level and will ensure a sustainable recovery of lending to the private sector”, reads a central bank release.
The American company Alvogen announced on January 31 the takeover, from the Advent investment fund, of the Bucharest-based Labormed medicine producer, which has become the core of the American consortium in central and Eastern Europe. “Our main goal as regards strategic acquisitions is to find opportunities to expand our product portfolio and production capacity, as well as to conquer new key markets,” Alvogen President and CEO, Robert Wessman said at the time. Labormed was set up in 1991 by a group of Romanian physicians and pharmacists and in May 2007 a factory was opened in Bucharest, on a greenfield investment worth 13 million euros. In February 2008 Labormed was taken over by the investment fund Advent for 123 million euros.
Early this March the Italian company DeLonghi started the production of household appliances at its factory in the industrial park Tetarom III in Jucu, Cluj county. The company’s investment stands at 30 million euros and the activity is carried out in a location purchased from Nokia in 2012.
On March 19, German company SAP opened in the western Romanian city of Timisoara a center providing premium consultancy services to customers from Europe, the Middle East and Africa. This is SAP’s 2nd such center in Romania, after the one in Bucharest. SAP Romania was established in 2002 and deals in sales and marketing as well as in the development of the localized versions of the German producer’s solutions.
On March 28th the Austrian company Holzindustrie Schweighofer announced a 150 million Euro investment in a wood-processing factory to become operational in 2014, in the Reci village of the Covasna county, in central Romania. The factory is expected to create 650 new jobs. Holzindustrie Schweighofer invested over 300 million euros in Romania and its annual turnover here stands at 300 million euros. The company owns 4 wood processing factories in Sebes, Radauti, Siret and Comanesti.
The American company Ford started in April the production of a new 1.5-liter EcoBoost engine, at its factory in Craiova, in southern Romania. “By end-2013, as many as 6 Ford plants in Europe, Asia and Northern America will produce EcoBoost engines, thus tripling the number of factories that manufacture such engines, as compared to 2010,” the company announced at the time. The plant in Craiova also produces the 1-L EcoBoost engine of 100 and 120 horsepower respectively, and also the Ford B-Max model. About 365 cars and 450 engines are produced in Craiova every day.
On April 17 it was announced that the Romanian state sold its entire 15% stake in the Transgaz natural gas transport company, put up for sale on the Bucharest Stock Exchange, in return for 315 million lei or 72 million euros. “This is a promising beginning which shows that when there is an attractive offer on the capital market, Romania has enough liquidities. The Romanian capital market needs a success story, and the listing of Transgaz has come at the right moment, it was a breath of fresh air,” said chairman of the BVB Board, Lucian Anghel.
Next week’s edition of Business Club will continue to look at the most important economic events in Romania in 2013, which involve important British, German and American companies such as Kingfisher, Daimler, Bosch, Lufkin and Plexus, to name just a few.
Useful Links
Copyright © . All rights reserved