The World Bank Office, Romania
ROMANIA WEEKLY UPDATE
Monday September 6 , 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
June nominal and real wage earnings
In June 2004 the gross monthly average earnings were
ROL 8,035,915 (or Euro 197.2) and the net monthly
average wage (all economy) stood at ROL 5,828,978
(or Euro 143). See attached the dynamics of the y/y
real growth of the net wage earnings in the second part
Oct-03
Nov-03
Dec-03
Ian-04
Feb-04
March-04
April-04
May-04
June-04
Real wage index (CPI
deflated)
y/y % change
7.9
9.0
9.6
7.1
8.2
11.7
7.1
9.2
10.6
of 2003 and first part of 2004.
The growth of net average earning was determined by:
payment of bonuses and overtime in the following
activities: logging, forestry, and related service
activities, hydrocarbons extraction and related service
activities, manufacture of tobacco products, wood and
wood products and cork processing, machinery and
equipment, electric machinery and equipment, radio,
TV and communications equipment.
In the structure of exports by goods, five sections hold
69.7% of the total: 22.5% wearing apparel made of
fabrics, knitted or crocheted, textile matters; 18.2%
mechanical devices and machinery; electric
machinery, appliances and equipment; reproduction of
sound and video recording; 14.9% metallurgical
products; 7.3% mineral products (crude oil, oil
products, ores, coal, cement, salt etc.) and 6.8%
footwear and similar. In comparison with the first
semester of 2003, the value of exports to the European
Union countries (EU-25) increased by 19.4%, holding
a weight of 73.7% in total exports.
In the first semester of 2004, the top ten trading
partners for exports (amounting to 74.3% of total
exports) were: Italy (22.1% of total exports), Germany
(14.9%), France (9.0%), Turkey (6.7%), United
Kingdom (6.6%), Hungary (3.8%), Austria (3.3%),
Netherlands (3.0%), Greece (2.5%) and USA (2.4%).
In June 2004, exports value was by 28.9% higher than
in June 2003.
Consumer
pricemeasured
inflation
Total
Food
Non-food
Services
July 2004
compared
with:
June2004
1.3
0.8
2.1
0.3
Dec2003
5.1
3.4
6.6
5.4
Monthly average
inflation rate during
1 I – 31 VII
2004
0.7
0.5
0.9
0.8
2003
1.0
1.2
0.9
0.6
The Government forecasts a 9% end-of-period
inflation this year. 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.
National
Bank
of
Romania
(NBR)
international reserves increase with 852
million Euro
Imports CIF in the first semester of 2004
amounted to Euro 11974.3 million (Euro 11052.5
million in prices FOB), by 22.0% more than in the
first semester of 2003. In the structure of imports by
goods, the first five sections, representing 66.3% of
total imports, were: 22.9% mechanical devices and
machinery; electric machinery, appliances and
equipment; reproduction of sound and video recording
declarations; 14.1% wearing apparel made of fabrics,
knitted or crocheted, textile matters; 12.9% mineral
products (crude oil, oil products, ores, coal, cement,
salt etc.); 8.5% transport means and 7.9% chemical
products and similar.
Foreign trade performance in the first semester
of 2004
July inflation
In June 2004, exports amounted to Euro 1635.0
million and represent the highest monthly value
registered since 1990 up to now. Exports FOB
achieved in the first semester of 2004 amounted to
Euro 9014.1 million, by 20.2% more than in the first
semester of 2003.
The monthly CPI-measured inflation rate in July 2004
stood at 1.3 % m/m, according to data released by the
National Institute for Statistics (INS).
At end-July 2004, foreign exchange reserves of the
NBR came in at EUR 8,615.7 million. The EUR 852.5
million expansion in July 2004 was the result of the
following: EUR 629.3 million worth of purchases by
the central bank from the forex market; EUR 207.4
million inflows under the PSAL and SAPARD
programs; EUR 18 million worth of incomes from
international reserve management; EUR 91.5 million
worth of principal repayments and payment of interest
on external public debt, direct and bearing the
guarantee of the Ministry of Public Finance; EUR 89.3
million in other net inflows. The gold stock stayed put
at 105.1 tones, but following the developments in the
world price of gold, its value decreased to EUR
1,092.6 million, taking the international reserves of the
National Bank of Romania (foreign currency and
gold) to over EUR 9.7 billion. By end-2004, payments
due on external public debt, direct and bearing the
guarantee of the Ministry of Public Finance, amount to
EUR 516.4 million.