Romania

Key findings for Romania from the 14th Annual Global CEO Survey

As recession fears subside, optimism seems to return amidst the Romanian business community. The perspectives for growth in Romania seem highly appealing for the local CEOs, 70% of which state that they are very confident in their company’s prospects for revenue growth in the next three years, a significantly higher level of confidence than that shown by the CEOs from the more mature markets of the EU (47%). Quite remarkably,

Romanian CEOs seem to mirror the medium term optimism of top managers from highly dynamic emerging markets such as China, where 72% of CEOs have expressed high confidence in the prospects for revenue growth in the next three years.

• The perception of foreign analysts regarding Romania’s economy for the next six months improved in March as Romania advanced a position compared to February up to the third place among Central and Eastern European countries, a ZEW survey reads, quoted by news agency Mediafax.
  
  
• The index measuring the expectations of financial experts for Romania increased by 11.1 points to 44.5 points

Opportunities for British business in Romania
(Jackie Bojor - FRD Center Market Entry Services

The industrial sector in Romania and other emerging markets presents numerous market opportunities for British businesses looking to export, to source or to invest in these markets.

The Romanian industry turnover went up in January agamst the similar period of 2010, driven by the growth recorded by the manufacturing industry. New orders in the industrial sector both from domestic and from clients abroad rose by 41.1% in January against January of last year, confirming the continued upward trend both in terms of turnover and in terms of new orders in the industrial sector.

British exports to Romania are based on chemicals, phannaceuticals, road vehicles, machinery & electrical equipment, telecoms and textiles.... (read more)

Economic Overview

Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs.

The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment have fueled strong GDP growth in recent years, but have led to large current account imbalances.

Romania's macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty.

Corruption and red tape continue to handicap its business environment. Inflation rose in 2007-08, driven in part by strong consumer demand and high wage growth, rising energy costs, a nation-wide drought affecting food prices, and a relaxation of fiscal discipline, but fell in 2009 as a result of the world recession.

Romania's GDP growth contracted markedly in the last quarter of 2008 as the country began to feel the effects of a global downturn in financial markets and trade, and GDP fell nearly 7% in 2009, and unemployment doubled. Romania hopes to adopt the euro by 2014.

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