BNR: Local producers’ capacity of covering consumer demand worsened in Q1

Newsroom 04/07/2016 | 11:07

The local producers’ capacity of covering consumer demand deteriorated in the first trimester of 2016 due to the pressure of workforce costs and imports competition at low prices, according to a release of National Bank of Romania (BNR).

„The growth registered by the internal demand in the first trimester (7.8 percent, annual variation)- a record for the post-crisis period- was due mainly to the population consume based on the increase in salaries operated during the previous year and the decreasing path of consumer goods prices, because of the two episodes of VAT quota decrease (June 2015 and January 2016). Moreover, the consumption appetite of the population was stimulated by a series of measures adopted by the big commercial operators in order to consolidate the market share, ” said BNR.

According to BNR, the main segment on which the aggravation of the commercial balance was produced in the third trimester is the consumer goods (including cars) „taking into account the slight recovery of the external deliveries volume- supported by the manufacturing and furniture exports- was completely annihilated by the imports expansion.”

„In this last case, a significant factor is represented by the high demand of second hand cars dedicated to individuals. In addition, the food trade deficit has deteriorated, the capacity of local producers to cover the consumer demand being deteriorated on one hand by the costs pressure with the workforce and on the other hand, by the imports competition at low prices,” added BNR.

Georgiana Bendre