RSS
KeysFin: Coronavirus spreading affects local businesses importing from China
China is the Romania's 7th commercial partner and the spreading of coronavirus affects local businesses that import especially telephones, electric machines and equipment from that country, according to KeysFin estimates.
Analysts say that impact at economic level will be directly proportional with the period needed to content the virus.
Data presented by KeysFin show that the value of commercial exchanges (exports plus imports) between Romania and China recorded an increase of 13.7% compared to 2017 and doubled compared to 2008, exceeding 5.1 billion euros in 2018, according to data of the National Statistics Institute (INS).
In 2018 Romania reported the highest trade deficit of 3.7 billion euros with China , exceeding the top of 2008 of 2.6 billion euros . The deficit grew by 20% against 2017 and by 63% against 2008.
China represents the 20th sales market for Romania, with a total export value of 746 million euros in 2018. The advance exceeds 360% compared to 2008, KeysFin analysts say.
Of the 2,200 Chinese companies, 2,120 have direct majority share of over 50% according to data published by companies at the Finance Ministry. The business figure of directly controlled companies by Chinese investors exceeded 1.3 billion lei in 2018.
The main sectors with direct majority Chinese investments are: trade (810 million lei, 62%), processing industry (413 million lei, 31%) and hotels and restaurants (45 million lei and 3% of total).
Most Chinese investors in Romania choose the Capital city, so Bucharest leads with a business figure of 470 million lei, 36% of total, followed by Hunedoara county with business figure of 404 million lei and 31% of total and Ilfov with 233 million lei and 18% of total.
However, the value of Chinese investments was below 100 million euros in 2018, according to BNR methodology.
According to KeysFin analysts, direct impact could become major, despite the fact that commercial relations or direct foreign investments seem to be limited, protecting Romania from the economic point of view.
There was an immediate effect over Bucharest Stock Exchange which dropped lately, when major European and American exchanges recorded drops because of investors' fears about the impact of coronavirus.
The KeysFin analysis is based on annual, financial data reported in February 2020 by companies with 50% direct Chinese participation,with the Finance Ministry.