MACRO
· The budget deficit continues to increase
According to the general consolidated budget execution in the first nine months of 2017, the budget deficit increased to 6.8bn Lei (representing 0.81% of GDP) – almost double the value registered in the same period of last year, when the budget deficit was 3.7bn Lei (representing 0.49% of GDP).
· 30% of Romania's workforce is employed abroad
Almost one third of the Romanian labor force (representing 13% of the population) is employed abroad, according to Liviu Voinea, deputy governor of the National Bank of Romania. "Although we have a 5% unemployment rate today, we are away from full employment, because we have a very important demographic issue that we have been talking about very little about: about 30% of the workforce and 13% of the Romanian population is working abroad. These are the official figures. One might say this is Romania's lost GDP", said Liviu Voinea.
· The macroeconomic trust index, at its lowest value in the past 4 years
In September, the macroeconomic trust index fell, according to CFA Romania, to 45.4 points - the lowest value recorded in the past 4 years. The decline was generated both by the reduction of the current conditions index (63.9, down by 4.6 points) and by the decrease in the expectations index (36.1, down 5.7 points).
· The number of insolvencies rose by 7.58% in 2017
The number of commercial companies and authorized persons increased this year by 7.58% (6,441 units) compared to the same period last year, according to the National Trade Register Office. At the same time, in the first nine months of the year, more than 11,000 companies suspended their activity.
· Coal production up 15.5%
In the first eight months of this year, coal production grew at a national level, by 15.5 percent compared to the corresponding period of 2016, to 3.07m tons of oil equivalent, according to data provided by the National Institute of Statistics. Simultaneosly, coal imports increased by 3.4% (11.100 tonnes of oil equivalent).
· Romania: the largest share of employed population in agriculture, in EU
According to Eurostat, Romania currently has the largest share of employed population in the agricultural sector in the European Union. At national level, the percentage of the population employed in agriculture is 24.7% - more than 20% more compared to the average recorded in the EU member states (4.5%).
Sources: Agerpres, Ziarul Financiar, Capital
BUSINESS
· Oracle exceeds 4,500 employees in Romania
The American company Oracle now has 4,500 employees in offices in Romania. "At present, Oracle Romania employs more than 4,500 people, allocated almost equally in non-technical and technical departments. However, the proportion of employees in the technical area starts to increase compared to that of non-technical employees", said Sorin Mîndruţescu, Oracle Romania's general manager. Over the past 5 years, Oracle has been named the most wanted employer in Romania, regardless of industry.
· Kaufland, down 2% in the first half of the year
The Kaufland hypermarket chain saw a first decrease in its local turnover in the first half of this year, by 2%, reaching 4.7bn Lei. This decline could be attributed to revenue cuts due to the removal of the "shelf tax" hypermarkets used to charge their suppliers.
· Alka is investing in a new production facility
The sweets and salty snacks producer, Alka Group, plans to invest 11.5m Euro in a new production plant, which will be located in Ploiești. The project will represent the most important investment in the industry this year.
· Teraplast sees decline in business
The Teraplast Bistrița Group recorded a decrease in its turnover, registering 295m Lei in the third quarter of this year - 5% lower than the same period last year. The company's net profit decreased accordingly, to almost half of its corresponding value in 2016 (16m Lei).
· Medicover Group: over 19% growth
The third player on the private medical services market in Romania ends the first three quarters of the year with a business growth of 19.3% over the same period last year, with revenues of 55m Euro. According to general manager Adrian Peake, the group will continue to seek development opportunities in the coming period.
· Danone, the highest net profit in the past three years
French yoghurt producer Danone recorded a turnover of approximately 52m Euro in the first half of 2017, and its highest net profit in the past three years – 17% more than in the similar period last year.
· Bucharest National Airport Company reports a 20% growth
The Bucharest National Airport Company (CNAB) completed the first nine months of the year with a turnover of 808m Lei - up 20.1% over the same period last year. Their gross profit increased as well, by 34% to 320m Lei. According to CNAB General Manager Bogdan Mîndrescu, the positive results obtained "are the direct effects of the new managerial approach, based on an investment plan with clear deadlines". CNAB plans to build a new terminal from Otopeni International Airport in 2022, in order to double the current airport capacity.
Sources: Profit.ro, Capital, Ziarul Financiar, Agerpres