The economy of Romania is one of the fastest-growing in the European Union, with a Gross Domestic Product (GDP) growing at a rate of 4.1% in 2019. Romania is a major exporter of agricultural products, such as wheat, corn, and sunflower oil, and is a major producer of automobiles, aircraft, and industrial machinery. The country also has a strong service sector, with a large banking sector and a thriving tourism industry.
The Romanian government has been actively pursuing economic reforms since the early 1990s, and these reforms have helped to create a more open and competitive economy. The government has implemented fiscal policies to reduce the budget deficit and reduce public debt and has also implemented reforms to encourage foreign investment.
Positive environment for Investment
Among the perks Romania can offer international investors are:
Market & Location Advantage
With a population of nearly 19 million, Romania ranks seventh among the countries with the largest marketplaces in Central and Eastern Europe. The nation is regarded as a special entry point into the EU market because it has access to almost 500 million people. Being at the intersection of the EU, the Balkans, and the CIS makes it a desirable site.
Three significant pan-European transportation lines pass through Romania:
- corridor no. IV joining Western and Eastern Europe,
- corridor no. IX linking Northern and Southern Europe. and
- no. VII – Danube River, facilitating inland water transportation.
iSource benefit
The labor force in the nation is highly skilled and offers competitive wages. They are well-versed in foreign languages, technology, IT, engineering, etc. Rich natural resources are available in Romania, including oil, gas, arable agricultural land, and surface and subsurface rivers. Finally, it is thought that the nation has a lot of potential for tourism.
Economic Benefits
Profits that are reinvested are exempt from taxes in Romania. Additionally, the nation offers state-sponsored aid programs to entice foreign investors to operate in Romania.
Social advantage
The nation benefits from a considerably improved investment climate thanks to an accord between the state and key unions. Additionally, the Romanian Labor Code governs labor relations in the nation.
Other advantages
Romanian GSM mobile telecommunications networks are highly developed. Oil and petrochemical industries are part of the highly developed manufacturing capacity. The nation also has numerous river and maritime navigation infrastructure.
Infrastructure for Investors
The facilities offered by the Romanian government to those who invest money in the economy are listed below.
The Public-Private Partnership
A public-private partnership (PPP) unites the public and private sectors to carry out a project or offer a service that is typically handled by the public sector. By giving its investors access to this facility, the government encourages effective asset management and capital investment.
Industrial parks
Industrial parks in Romania are built to overcome obstacles and draw in capital, labor, and export growth.
The core concept behind an “industrial park” is that it is a government-designed tool for an industrial policy intended to draw in input with the eventual goal of attaining growth and prosperity.
Scientific and technological parks
S&T Parks is a strategy used in Romania to promote regional invention and productivity and to increase the role of science and new tech in economic growth. S&T Park may play a key role in fostering an environment that encourages technopreneurs in the neighborhood.
Restrictions on foreign investment
Overseas investment and involvement in joint ventures and Romanian enterprises are not subject to any limitations. Any type of Romanian registered corporation may be owned entirely by a foreign person or entity.
Currently, the three primary industries where further state consent is required for entrepreneurs are homeland defense, monopolies, and weapons. In Romania, both resident and non-resident corporations are permitted to purchase and hold rights to moveable property.
