Romania is highly exposed to the global economic recovery, particularly of the euro zone’s as its main exports are cars, clothing and textiles, industrial machinery, electrical and electronic equipment, pharmaceuticals agricultural products, Ishaq Siddiqi, Financial Market Strategist of ETX Capital – a company highly ranked among companies specializing in investments and financial services in Great Britain – said yesterday at a press conference on launching operations in Romania. “The Romanian market is equipped to take the first step toward growth because clients already understand the need to make smart investment decisions much better,” Andrew Edwards, Chief Executive Officer ETX Capital said, adding that Romania is the first East European country chosen by the British company to open a branch in.
According to ETX Capital analysts, Romania’s GDP in 2013 is expected to come in at around 2 percent on an annualized rate and 2.25 percent in 2014, outperforming many eastern European counterparts. “The investment environment in Romania is also likely to advance, being a business friendly country. Foreign investment continues to increase as Romania has a diversified economy, good potential for income growth and increased competitiveness”, said the Financial Market Strategist of ETX Capital. Regarding the local capital market, the Bucharest Stock Exchange is up 18 percent YTC – yield-to-call – and currently around the 6000 level. Year-end target is 6380 and mid-2014 target – 6500.
The decision to enter the Romanian market was based on the positive evolution of macroeconomic indexes, consolidated regulations, and the opportunity to develop the financial service market beyond current market players.
ETX Capital analysts concluded that Romania suffered a severe downturn in 2008-2009, but the economy has undertaken a large adjustment to restore macroeconomic stability wchich is expected to continue into 2014.