The Romanian economy saw an 8.6% rise in the first half of the year, because of a good agricultural year, and if the GDP growth rate and the investment dynamics are preserved, Romania could become one of the top ten EU countries by 2020 in terms of economic strength, according to the Minister of Economy and Finance, Varujan Vosganian. “We have not had such a high economic growth for at least twenty years. It is hard to compare this with the time before ‘89, but these are record levels for the period since the introduction of the GDP index,” said Vosganian.

In the first quarter of the year, the GDP climbed 8.2%, while the growth rate recorded in the second quarter of the year amounted to 8.9%. The MEF official said Romania could climb to the 12th position in the ranking of European states in terms of GDP, from the 17th place at present.

HSBC’s European Active Real Estate Fund has completed its first property deal in Romania.

The fund has purchased a 50% stake in the Expo Market Doraly trade counter and warehouse park in Bucharest, Romania, for €104m (£82m).

The fund has closed with €450m (£355m) of equity.

The scheme comprises 592,000 sq ft of commercial space including showroom, warehousing, and has a further 376,740 sq ft at various stages of development. There are currently about 800 tenants at the park, which is on both sides of the DN2 highway, eight kilometres east of Bucharest.

Matthew Hunt, fund manager at HSBC’s Specialist Fund Management, said: ‘The site is already well-established among the local wholesaler community not just in Bucharest but further afield within Romania too, and we intend to help our partners realise the full potential of this strategically located park, which will improve further on completion of planned ring-road improvements to provide an exceptional trading environment’

‘This acquisition is very much in line with our strategy for investing in real estate-focused assets in the wider Balkan region, and will hopefully be the first of many value-added deals we complete

The popularity of Romania as a holiday destination is set to increase in the next few years, an airline has predicted.

Low-cost carrier Wizz Air said the country offered a range of attractions to visitors, potentially making it one of the most popular tourist destinations in Europe

Natasa Kazmer, the airline’s head of corporate communications and public affairs, commented: “It has a booming capital, picturesque countryside and the beautiful beaches of the Black Sea.”

She added that since budget carriers had made travel to Romania quick and affordable, it was now well-placed to become the new “must-see place of Europe”.

The country’s growing popularity with holidaymakers could also boost its appeal as an overseas property investment spot.

This week, Wizz Air announced the launch of a new service between the Romanian capital Bucharest and Liverpool John Lennon Airport.

According to the American Automobile Association, Romania experienced a 700 per cent increase in the number of US tourists this year.

A study conducted by Unicredit Group reveals that 11% of Romanians intend to buy a home during the following three years, well above the 6% average in the Central and Eastern Europe states.
Although the number of owned home in the South-Eastern states is higher than in the Central Europe, and financial possibilities are quite far lower, some 15% of the population here intends to purchase a home during the following 10 years.The fast increase of income, the easy access to credits and superior economic growth rates are the main causes generating a 24% annual growth rate for real estate credits, the analysts say.

In Romania, the credits taken by the population were on the rise in Q1, reaching 18.1% of GDP, 1% more than in Dec. 2007.
Data from Romania’s Central Bank (BNR) say that in end March, the balance of the crediting to the population had reached 76.54 billion RON (or 20.5 billion euros).

Consumer credits amounted to 1.5 billion euros in Q1. They accounted for 14.3% of GDP this March, up 0.7% from the end of last year, read calculations made by Ziarul Financiar daily, based on data from the Central Bank and the National Institute of Statistics.

Mortgage and real estate crediting accounts for only 21% of the credits to the population, consumer credits represent the highest percentage. The daily writes that the Central Bank’s statistics offer a distorted image, because mortgage credits are considered consumer credits.

Credits taken by the population are much below the average in the euro area, where they accounted for 55% of total crediting in end 2006.

Comparisons with mature markets show a very high growth potential for retail crediting, for mortgage crediting firstly. Most bankers connect their development plans with crediting with real guarantees, which has high growth potential, they believe.

The net average salary in Romania rose by 23 percent in May compared to twelve months earlier, the National Forecast Commission says.

Wages now stand at an average of Lei 1,248 (€347).

Gross average incomes stood at Lei 1,704, compared to Lei 1,750 last year.

The net average income of Romanians grew by more than 15 percent in December 2007 compared to the previous year.

For 2009, the National Forecast Commission is expecting a net average salary of Lei 1,303, which will rise to 1,819 by 2013.

However Bulgarians and Romanians still have the lowest incomes in the European Union, according to leading international bankers, JP Morgan.

Carrefour opens a new unit today, in the “Vitantis” shopping centre in Vitan, with a 4 200-sq m area, the company announces in a news release.

The investment in Carrefour Vitantis amounted to approx. EUR 12 mln. The new unit will have 36 cash registers and a parking facility for 2 000 cars. Although smaller than the traditional 8 000 sq m units, in Carrefour Vitan customers will be able to find 100 per cent of the usual product range sold in such units. The non-food sector however will focus on basic products, including electronic and home appliance, garments, sports products, books, music, films, toys and office supplies.

Carrefour Vitan offered 300 new jobs, with Carrefour Romania employing over 8 000 people since its establishment, and over 1 000 more in Carrefour Express supermarkets. In 2008-2009 Carrefour will carry on its development strategy, and will open new hypermarkets in Oradea, Buzau, Sibiu, Deva, a second unit in Braila, Iasi and Constanta each, and a new one in Bucharest, in Berceni area. Carrefour is the leading hypermarket chain in Romania, with approx. EUR 866 mln in turnover in 2007, accounting for a 42.2 per cent increase since 2006. in 2008, Carrefour expects its turnover to be in excess of EUR 1 bn.

A combined-cycle power plant in Brazi, Romania to be built for oil and gas producer Petrom S.A. will be the first application of GE Energy’s highly efficient Frame 9FB gas turbine in Romania, further expanding GE’s growing presence in the country.

This large turnkey project is a ‘first’ for GE Energy in the region, according to Rod Christie, region executive-Eastern Europe for GE Energy. “It underscores our commitment to supply advanced, reliable power generation equipment and services that will help our customers meet the region’s growing need for reliable sources of energy,” he said.

Romania is one of the fastest growing GE locations in Europe. “Our goal is to create growth by matching Romania’s potential with GE’s proven equipment and services, not only helping to increase customers’ competitiveness but also anticipating their needs and advancing the upgrade of infrastructure in the country,” noted Christie.

GE has been active in Romania since 1984, and today has more than 900 employees in the country, with businesses operating in the energy, aviation, healthcare, lighting and power protection, financial and real estate sectors. GE Energy has supplied equipment for a variety of power projects in Romania including nuclear, combined heat and power and industrial cogeneration applications.

The new combined-cycle plant would produce approximately 860 megawatts of power. Approximately 20 percent of the plant’s electricity output would be used by Petrom for its own operations, with the remainder sold on the Romanian power grid.

In addition to equipment supply, GE provides project management services and commissioning services, and acts as leader of the consortium. Metka, who specializes in the construction of energy projects supplies balance-of-plant equipment, engineering and construction services.

Based in Bucharest, Petrom is the largest Romanian oil and gas group, with activities in exploration and production, refining, petrochemicals and natural gas. Petrom is a member of the OMV Group of Austria, the leading oil and gas company in Central Europe. GE has a long-standing relationship with OMV and has provided the company with gas turbines, compressors and other oil and gas equipment over the years.

As you get to know Romanian people better, you will see that they are rather fond of eating and wish to honour their guests with generous and delicious meals. Romanian gastronomy has survived through the centuries due to its robust and simple structure. Over time it has been influenced by oriental and Slavonic cookery. Peasant farms produce all of the vegetables needed for cooking. In certain regions, the local people use corn to prepare mamaliga, a polenta which often replaces bread. One traditional dish is called “bulz” and is prepared with mamaliga, cheese and cream. In Transylvania vegetable soup with cream is popular though the bean soup tends to be the most appreciated. In Moldavia and Walachia soups are given a sour flavour through the addition of bors (borsht), a sour liquid  prepared in ceramic bowls that increases one’s appetite. In Bucovina, beet bors with cream is typical whereas in the Delta they serve fish bors prepared with several types of fish and spices.

One can find the traditional dish called “sarmale” in any part of the country. Sarmale are prepared with mincemea mixed with rice that is rolled in cabbage, grape, or lime leaves, giving them a very refined taste. They also can be prepared more simply where the meat stuffing is replaced by rice, muchrooms, nuts, and carrots. Cheese can be found in various varieties and cream is generously used in a lot of dishes. Of all the varieties of Romanian cheese the most unique and appreciated is “telemea”, a cheese that is specific to the Balkan region.

Oriental influences are more visible in Dobrogea and Walachia, where people eat meat balls and “mititei”, balsa sausage-like roll of spiced minced meat.

Traditionally Christmas is celebrated with the preparation of pork dishes and Easter with lamb dishes. Romanians love sweets, which is reflected in the large variety of pastry products, the most popular of which is “cozonac” which is a traditional cake. “Sarailie”, made from honey, nuts and pastry is exemplary of the oriental influence in Romanian desserts. Since Romanian’s topography is extremely varied, many vineyards can be found along many hill sides and a large variety of wines can be found.

Economic growth in Romania is outpacing the EU average, according to new statistics.

According to Eurostat, the eastern European country saw its gross domestic product go up by 8.2% during the first three months of this year.

This is more than three times the amount that was recorded across the EU as a whole during the same period.

In addition, the figure is also up from 6% in the first quarter of 2007, which was Romania’s first year as an EU member.

According to finance minister Varujan Vosganian, this trend has been driven by growth in the construction and service sectors.

This suggests that the growth of tourism and overseas property investment is having a positive impact on the Romanian economy.

Property in the eastern European country is currently in high demand.

This has led to supply being fairly restricted, which in turn has made available properties much more highly sought-after, thus increasing their prices.