Romania cannot replace Ukrainian agriculture overnight

Significance

Raising the availability and quality of inputs, training the labour force properly, using digital tools in operations, achieving energy self-sufficiency from renewables and accessing sophisticated forms of funding are on the agenda, but will require years of investment.

Impacts

• The knock-on effects of fuel prices on agricultural supply chains are beginning to emerge.
• Larger support measures will be required to keep farmers and food producers afloat.
• The cost of additional investments in agriculture may exacerbate public deficits.
• The Central Bank will likely continue to raise interest rates in step with inflation.