Alexandru Combei, BRD Asset Management: "There are chances that in the second semester the economic growth of Romania will accelerate"

There are chances that in the second half of the year the economic activity of our country will be more dynamic, thanks to the impulse from domestic demand, believes Alexandru Combei, CFA, Investment Director of BRD Asset Management.

The fund manager said: ""The first part of the year disappointed slightly as economic growth was below expectations and now all macro analysts are revising down their forecasts for the full year 2024. But I would say there is a chance that the second half to be something more dynamic, i.e. Romania's economic growth should accelerate, based on the impulse that should come from domestic demand. I would say that we have a fulminant increase in the nominal salary which, combined with the current inflation, means a very large increase in salaries in real terms. From the fourth quarter we also have the increase in pensions, so domestic demand has room to help the economy. On the supply side, the industry seems to have stabilized".

Regarding the monetary policy, Alexandru Combei emphasized that there are analysts who give chances that the BNR will cut the interest rate again this year, but in his opinion there will be no rate reductions. "Overall I am moderately optimistic for the second part of the year. There is some concern about the fiscal deficit, but this is likely to move to next year," said BRD Asset Management's Chief Investment Officer.

• "Episodes of high volatility can be times when investors buy financial assets at lower prices"

The fund manager advises investors not to react emotionally during periods of high volatility. "It's easy to say but harder to do. When emotions come into play, even more sophisticated investors have trouble applying advice, but this can be improved through education. People need to understand that in the short term there is also volatility; investing in shares involves volatility," said Alexandru Combei.

According to BRD Asset Management's Investment Director, volatility brings opportunities that can be taken advantage of. "No one can do market timing. I personally did not think that the performance at BVB would be so good, but it was a lesson that an investor must be in the market, be invested. This is the recommendation. Of course there will be episodes with high volatility, but which can be fruitful. There are times to buy financial assets at a lower price," said Alexandru Combei.