The World Bank Office, Romania
ROMANIA WEEKLY UPDATE
Monday May 31 , 2004
The material published in this newsletter is compiled by the World Bank's Bucharest office and staff in Washington, and on the basis of publicly available information. It does not
represent the opinion of the World Bank or any other official body. No responsibility for factual accuracy can be taken
March nominal and real wage earnings
In March 2004 the gross monthly average earnings
were ROL 8,065,813 (or Euro 201) and the net
monthly average wage (all economy) stood at ROL
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Ian-04
Feb-04
March-04
Real wage index (CPI
deflated)
y/y % change
8.0
9.2
7.9
9.0
9.6
7.1
8.2
11.7
the Romanian exports in Q 1 2004 were Italy (22.8
percent of the total exports), Germany (15.5 percent),
France (8.5 percent), Turkey (6.8 percent), the UK
(6.8 percent), Hungary (3.6 percent), Austria (3.3
percent), the Netherlands (3.2 percent), Greece (2.6
percent) and the US (2.3 percent). Q 1 2004 FOB
exports totaled 4.32 billion Euros, up 14.6 percent
compared with the similar period of 2003. March 2004
FOB exports stood at 1.61 billion Euros, up 20.5
percent from March 2003, 24.3 percent higher than the
2003 average and 8.2 percent higher on a monthly
basis, being the highest monthly value since 1990. Q 1
2004 CIF imports reached 5.34 billion Euros, up 17.7
percent year on year. Imports from the EU countries,
stated in Euros, advanced 13.2 percent year on year in
Q 1 2004, making up 53.8 percent of the total imports.
Imports from Central and Eastern Europe rose 23.4
percent, making up 10.6 percent of the total imports.
5,857,482 (or Euro 146.2), up 6.9% m/m. See attached
the dynamics of the y/y real growth of the net wage
earnings in the second part of 2003 and first part of
2004.
Net average earnings increased in most economic
activities, being determined by the following causes:
payment of bonuses and incentives; tax regularization
for 2003; salary negotiations in the following
activities: hydrocarbons extraction and similar,
machinery and equipment, electric and thermal
energy, gas and water production and supply,
construction, trade, financial intermediation; payment
of bonuses from the net profit in the following
activities: wearing apparel, publishing, printing and
reproduction of recorded media.
April inflation
The monthly CPI-measured inflation rate in April
2004 stood at 0.6 % m/m, according to data released
by the National Institute for Statistics (INS).
Foreign trade performance in Q1 2004
Romania's exports to the European Union countries,
stated in Euros, rose 12.5 percent in Q 1 2004 year on
year, standing at 67.6 percent of Romania's total
exports, as data from the Romanian National Statistics
Institute indicate. Exports to Central and Eastern
Europe increased 48.5 percent, representing 10.1
percent of the total exports. The main destinations for
The Government forecasts a 9% end-of-period
inflation this year. Price hikes of food products
continued to decelerate in March to 0.7% m/m. In
2002-2003, food prices have constantly increased at a
slower rate than the headline inflation, while services
prices have increased at a steeper pace.
Additional
information
can
be
found
at
http://www.insse.ro/
Consumer
pricemeasured
inflation
Total
Food
Non-food
Services
April 2004
Monthly average
compared inflation rate during
with:
1 I – 30 IV
Mar2004
0.6
0.3
0.7
0.0
Dec2003
2.8
2.2
3.3
3.2
2004
0.7
0.5
0.8
0.8
2003
1.1
1.4
0.9
0.5
The privatization of BCR
The government will meet this week the last
requirements outlined by the IFC and EBRD for
taking over 25% of the BCR bank's shares. The
government will take formal responsibility for
doubtful assets and all liabilities resulted from trials
inherited by BCR from Bancorex, explained Finance
Minister Mihai Tanasescu. The government rushed to
announce the deal completed as early as last fall, but
more details had to be negotiated meanwhile.
Adjustments in the managerial structure of the bank
have been operated while the balance sheet was
cleaned from doubtful assets or potential liabilities
inherited from the bankrupt Bancorex in 1998. PM
Adrian Nastase announced that the Executive is
willing to carry on the privatization process and that,
at the moment, the option of selling another 25% of
the stock is being analyzed. The President of EBRD,
Jean Lemmiere, would come to Romania over the
coming days to discuss with the Romanian authorities
the variants related to the most appropriate moment
for the continuation of BCR privatization.
National Bank of Romania international
reserves rise by 260 million Euro
National Bank of Romania (NBR) foreign currency
reserves stood at 7,026.5 million Euro in late April, on
the increase by 261.9 million Euro, according to data
released by the National Bank of Romania (NBR).
The increase in April ensued from the central bank's
212-million Euro net purchases on the foreign
currency market, 38.9-million Euro net inflows
derived from foreign currency Government bonds
issued by the Ministry of Public Finance on the
domestic market, 17.6-million Euro revenues derived
from the international reserve management, payments
worth 23.3 million Euro in the form of outstanding
installments and interests to the foreign public debt,
direct and Foreign Ministry-secured, and other net
proceeds totaling 16.7 million Euro.