The Romanian government has decided to ride out criticism from Brussels and demonstrations at home as it forges ahead with controversial changes to the justice system.
The annual growth rate strengthened marginally to 4.1% y/y from 4.0% in Q1. The 5.5% y/y target for the overall 2018 growth rate inked by the state forecasting body and used by the government in the first budget revision now seem unrealistic.
The boom Central and Eastern Europe has been enjoying for the last four years has reached its peak as countries in the region start to run up against their structural limits.
As I reporter I have attended many protests in the Romanian capital, but I haven’t witnessed much violence or ever felt threatened in any way. That changed this weekend.
Former minister says the ruling PSD has “gone too far” and calls on Liviu Dragnea to resign after avalanche of criticism from the opposition over brutal intervention by riot police at August 10 protest.
Colliers International warns of limitations to GDP growth and a threat of recession if the labour force squeeze caused by low unemployment and high emigration continues.
President Iohannis accuses government of failing to take responsibility for brutal intervention by riot police at recent protest, while ruling PSD says the president incited “social anarchy”.
Growth has visibly moderated after the robust increase last year, though the volume of new orders reported by companies indicates that the slowdown has probably reached an end.
50,000 anti-corruption protesters return to Victory Square to demand the government's registration, unbowed by lavish use of tear gas and clashes with riot police the previous night.
Riot police fought back anti-corruption protesters, spraying impressive quantities of tear gas into the crowds and using water cannons to disperse the 100,000 people gathered in Victory Square.
The revision reflects slower expected core inflation and softer hikes of the administered prices, while the inflationary pressures generated by fuel and tobacco prices are now seen as stronger than previously.
Romania’s record retail sales growth has come off the boil. The retail sales index increased by 6.6% y/y in Q2, a marginal improvement from the 6.4% y/y in Q1 yet only half of the record double-digit growth rates posted in the past two quarters.
Numbers have dwindled at the once massive anti-corruption protests in Bucharest, allowing the government to forge ahead with changes to justice laws and criminal legislation.
As the property boom in Central and Eastern Europe continues, investors are looking for new and lucrative niches to target. Except in Poland, the student accommodation segment has barely been exploited in the region but it has high potential.
The government set a 90% dividend payout ratio for companies where it holds significant stakes, but such revenues can hardly fill the widening fiscal gap that more than doubled to RON15bn in H1 as payroll expenses soared.
We should not delude ourselves into thinking that Hungarian SMEs will able to compete against large multinationals, warned Finance Minister Mihaily Varga at the Balvanyos Summer University in Baile Tusnad.
Mortgage lending remains the most dynamic segment of the banking market, but the central bank is increasingly concerned by the sluggish corporate lending.
Takeover of stake in Black Sea shipyard for the first time puts the Romanian state back in control of a strategic industrial company that had previously been privatised.