Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector
Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult›
Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft
The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult›
“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted
The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could… Mai mult›
Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks
The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult›
de Marin Pana , 2.4.2018
Seven countries concentrate 99% of the deficit that Romania registered in foreign trade exchanges in 2017 – according to provisional data published by the National Institute of Statistics.
Surprisingly, while China ranks first, as expected, Hungary holds the second position, at a short distance, and Poland ranks third, with a sixth of the whole deficit.
Somewhat unexpectedly, according to the official data published by INS, our country recorded surpluses last year in relation to France, the United Kingdom and the US. The largest trade partner and the engine of the EU economy, Germany, holds only the ninth position in the top 10 countries in relation to which we have a trade deficit.
Neither the relation with Italy or Spain is too bad, with an import coverage ratio by exports of 96.7% and 96%, respectively.
Therefore, not the economic exchanges with the large European economies are the ones to create problems, but rather those with former colleagues of the socialist bloc, to which we can only export at worryingly low proportions compared to imports (54.3% with Hungary, 49.7% with Poland or 62.5% with Slovakia, interestingly, we are doing somewhat better in relation to the Czech Republic, at 86.4%).
These figures are even lower in relation to two countries from which we are massively importing energy resources (46.5% with Russia, a market on which we cannot perform the same as in relation to large Western economies and only 2.7% with Kazakhstan).
Nor is the Romanian presence on the Chinese market in a situation to help, with exports of only EUR 738.5 million to the largest market in the world.
- Top foreign trade partner countries in 2017 (million euro)
- Country fob export CIF import Balance %deficit FOB/FOB coverage
While these are somewhat excusable, developments in recent years in relation to two Balkan trade partners are increasingly poorer in the sense that we have moved from surplus to deficit:
The deficit in relation to Bulgaria is not worrying in terms of size but, moreover, as a new thing, but the one in relation to Turkey is quickly moving towards the threshold of one billion euros per year.
Also in the West, smaller economies are those that raise great problems for us, significant deficits in relation to the Netherlands (EUR-1.4 billion at an import coverage ratio by exports of only 55%), Austria (EUR 1.05 billion and 61%, respectively) and Belgium (about EUR 520 million, almost as much as the one for Italy, at a 74% coverage ratio) are worth being pointed out.
To clarify directions to which we should act, beyond the general considerations, it is worth selecting and clearly mentioning the top 10 countries in relation to which we register a trade deficit, of which seven are over one billion euros, both in terms of absolute value in euro and share in total.
Quite bizarre, in this ranking, Slovakia is close to Germany.
- Top 10 countries in relation to which we have a trade deficit
- Country Balance deficit (%)
Basically, we should start focusing gradually but firmly and more clearly on East and the markets of medium-sized countries, both western ones and those from our geographic proximity.As well as start analysing how we could lose the surpluses we obtained until recently in the Balkans.
Finally, precisely because of our most significant surplus, the one in relation to the United Kingdom, it seems that we shall have some difficulties following the Brexit.
Lăsați un comentariu
Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability
Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult›
Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult›
AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy
The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult›
Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%
The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult›
The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult›
Liviu Dragnea announces a dictatorship through ordinances: "Correct procedural approach through Parliament is wrong, from the law on investment fund to laws on the judiciary. We will be firmer and more radical"
"We decided to be much firmer and more radical. My way of having a correct procedural approach in the Parliament proved wrong. In the Parliament,… Mai mult›
Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult›
The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult›
C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's
Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult›
The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult›
Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult›
RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years
Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult›
Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult›
Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network
The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult›