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The Business Week in Romania 04.12 - 08.12.2017

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MACRO

·     BNR foreign reserves assets drop by 2.56%

In November, the National Bank of Romania's foreign reserves fell by 2.56% to 33,062bn Euro (compared with 33,932bn Euro at the end of October). According to BNR, the gold reserve remained at 103.7 tons. Given the conditions of international price developments, the value of the gold reserve was 3,643bn Euro.

·     Trade deficit grows with more than 2bn Euro over ten months

In the first ten months of this year, the trade deficit went up by 2.29bn Euro, compared to the same period last year. Thus, the trade deficit reached 10.2bn Euro, after imports climbed 12.4% compared to the 9.6% growth rate reported by exports.

·     Romania ranks first at retail trade growth in the EU

According to Eurostat, Romania ranked first in the European Union in October – for the third consecutive month – in terms of annual growth rate for retail trade; the retail trade volume increased in Romania by 12.6%, compared to the 0.9% increase in the European Union.

·     Romania spent only 1.1% of European funds allocated for 2014-2020

So far, Romania has spent only 1.1% of the European money allocated to the 2014-2020 programme (400.4m Euro respectively). Most of the amount spent was allocated through the European Regional Development Fund, respectively 241.9m Euro.

·     Over half of the IT sector in Romania is controlled by foreign investors

More than 60% of the software industry in Romania is controlled by big foreign investors. According to a study by KeysFin, the largest businesses in the IT & Software sector in Romania are those of Oracle (200m Euro in 2016), followed by IBM with 179m Euro worth of business, Ericsson (160m Euro), Bitdefender (100m Euro) and Endava (69m Euro). Statistics show that 60% of the market belongs to foreign firms, with the top three major investors (the Netherlands, Germany and the US) concentrating more than half of the business.

·     Romania has the smallest fleet of commercial aircrafts in the EU

According to Eurostat, Romania currently holds the smallest fleet of commercial aircrafts in the European Union, with a total of 46 aircraft - accounting for 1% of the total of over 6,500 aircrafts used for passenger and freight transport in the European Union.

·     More than 60% of households in Romania have access to the Internet

According to data published by the National Institute of Statistics, 68.6% of households in Romania have access to the Internet, and 65.5% of households are equipped with computers. However, the residential environment comes with a notable gap: in urban areas, 75.9% of households are computer equipped, while in rural areas the percentage falls to only 51.9%.

·     Prices of old Bucharest apartments continued to rise in November

The value of three-room apartments based in Bucharest continued to increase last month by 9.6% – with 7.550 Euro higher than in the same period of last year, and 1% higher than the previous month, reaching a new maximum level price. At an average of 86,500 Euro, the price level is close to that recorded in August 2010.

 

Sources: Agerpres, Ziarul Financiar, Mediafax.ro

 

 

BUSINESS

·     Profi could reach a network of 1,000 stores in 2018

The Profi supermarket chain is approaching a total of 700 units, 200 of which were opened this year. "Since the beginning of the year, we have opened 171 stores in 37 counties plus Bucharest. By the end of the year, we plan to bring together as many as 700 stores. [...] In principle, in 2018 we will open at least as many stores as in 2017", said Daniel Carstea, the executive in charge of Profi operations in Romania. Given the number of stores opened this year, Profi is leading the market as the fastest-growing chain of stores in Romania. 

·     Otopeni Airport reaches Top 5 in Europe

As a result of passenger traffic growth in October (16.7% over the previous month), Henri Coandă International Airport Bucharest (Otopeni) climbed to the 5th position in the category of airports with 10 – 25m of passengers a year, in the European rankings awarded by Airports Council International.

·     Conpet signs a 70m Lei contract with Petrotel Lukoil

The local oil and gas transporter Conpet Ploieşti, whose major shareholder is the Romanian State, concluded a contract worth about 70m Lei with Petrotel Lukoil, for transportation of the import oil arriving from OIL Terminal to the Ploieşti refinery. The contract has a duration of 1 year.

·     VCST invests 4m Euro in the Alba plant

VCST Automotive Production Alba has completed an investment of 18.7m Lei (or 4m Euro) in the development of the auto parts factory in Alba. "Until September this year our company's investments reached over 18.7m Lei. By the end of next year, new projects of about 33m Lei are planned to increase production capacities", said Corneliu Pricope, VCST Automotive Production Alba plant manager.

·     Konica Minolta, a turnover of 24m Euro

The local subsidiary of the Japanese company Konica Minolta predicts a turnover of 24m Euro for the fiscal year April 2017 - March 2018 - up by about 4% (or 0.9m Euro) compared to the previous fiscal year. The company holds a 35% share of the local office equipment and industrial printing and production system market.

·     Atelierele Pegas reaches 5 units nationwide

Atelierele Pegas inaugurated the fifth store in the network and the second one outside of Bucharest (in Râmnicu Vâlcea), following an investment worth 40,000 Euro. "Atelierele Pegas are expanding in our country alongside our NEPI partners, so it was natural for us to open a store in the country's newest shopping center. Râmnicu Vâlcea represents an important market for us, which now takes shape in a generous space of 200 sqm", said Andrei Botescu, co-founder of the company.

 

Sources: Ziarul Financiar, Profit.ro, Agerpres

 

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