At 4.0% y/y, December inflation came in slightly above our 3.9% forecast and market consensus. We believe that this will be the peak for many months to come.
Romania’s current account deficit reached €10.7bn, nearly 4.9% of GDP, in the 12-month rolling period ending November, 22.7% up y/y.
Installed by a heterogenous group of parties and MPs, and with term elections looming towards the end of this year, the scope of Ludovic Orban’s government to take action on issues such as tackling Romania’s budget deficit is very limited.
More political uncertainty ahead in Romania as the government mulls early elections, after adopting a budget that analysts warn is subject to multiple risks.
110 M&A deals took place in Romania in 2019, with a estimated value of between €4.0bn and €4.4bn, according to consultancy firm Deloitte.
The European Commission’s batch of Economic Sentiment Indicators (ESIs) fell sharply in December, although they remain consistent with regional GDP growth holding steady at around 3.6% y/y in Q4. Robust domestic demand should help to cushion the blow
The company has financed its sharp expansion over the last few years by aggressive borrowing. It is now eyeing the mobile telecommunication operations of Deutsche Telekom in Romania.