Key View

• At Fitch Solutions, we have revised our average inflation forecasts for Romania to 4.2% and 3.6% for 2021 and 2022 respectively, up from 3.9% and 3.2% previously amid elevated energy price growth.
• The upward pressure on prices prompted the National Bank of Romania (BNR) to raise its key policy rate by 25 basis points on October 5 to

Key View

• We believe that rising political competition between the ruling PNL and opposition PSD parties will significantly impede policy-making, impacting crucial areas such as healthcare, until parliamentary elections take place towards the end of 2020.
• We also highlight growing risks to social stability in Romania, as the number of daily

Key View

• The Covid-19 pandemic will have a negative impact on household goods spending in Romania in 2020, particularly big ticket items, such as household appliances and furniture, as consumer purchasing patterns shift towards essentials on back of the economic impact of lockdown measures.
• Lockdown measures will result in higher levels of

Key View

• At Fitch Solutions, we expect a gradual moderation in Romania’s economic activity, forecasting real GDP growth to average 3.4% in 2020 and 3.2% in 2021, from an estimated 4.1% in 2019.
• Private consumption will gradually moderate, as scope for further tightening of the labour market is limited and we anticipate the government to

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• A ban on exports of certain medicines will benefit multinational pharmaceutical manufacturers operating in the EU.
• Romania’s pharmaceutical market remains a challenging operating environment as a result of repressive pricing regulations and a high clawback tax.
• Countries continue to implement export limits in the face of a growing

Key View

• Electric vehicle sales in Romania are set to expand further in 2020 driven by an expanding charging infrastructure network.
• Generous incentives aimed at reducing the cost of purchasing an electric vehicle will also underpin rising demand in the country.

Romania currently has one of the lowest rates of penetration of electric