CES Report on Romania - “Challenges and Opportunities for the Romanian Business Environment in 2024”

Software for the automotive industry, digitalization of Romania, establishment of the national economy as a potential market for re-shoring and friend-shoring, as well as the possibility to attract global talent in the future, under certain conditions, among the opportunities that may stand out for Romania in the near future (2024 and beyond), according to the most recent CES Report on  “Challenges and opportunities of 2024 for Romanian Business Environment”.

According to the Report, Romania is on track to surpass a GDP of $400 billion by 2026, effectively doubling its GDP in just 10 years. while the sectors with the highest labor productivity in Romania remain the sectors in the area of highly processed manufactured products.

Romania is facing the possibility of a qualitative leap in its market economy status, of transforming this economy into a developed economy with complex and autonomous mechanisms for creating prosperity,

However, this growth is contingent on the sustainability of its economic development. Key to this is mature economic governance that ensures transparency, predictability, and stable, long-term policies that will foster a positive environment for businesses.

CES Report also addresses challenges facing Romania in the coming years, including its budget deficit, inflation, rising public debt, trade imbalance, slight increases in unemployment, and a large underground economy. Despite these hurdles, the report offers valuable insight into how these challenges can be addressed for continued growth.

Previously, CES released a brief overview of major events in 2024 that will impact both the private business sector and Romanian society as a whole. These include recent fiscal policy changes, Romania’s partial accession to the Schengen Area, and four significant elections.

The current CES Report was produced in collaboration with leading academic experts from Romanian institutions, including Univ. Prof. PhD. Radu-Cristian MUȘETESCU (ASE Bucharest), Univ. Prof. PhD. Cristian-Valeriu PĂUN (ASE Bucharest), PhD Associate Professor Radu NECHITA (UBB Cluj-Napoca), and Univ. Lect. PhD. Christian NĂSULEA (University of Bucharest).

This comprehensive analysis serves as a practical resource for businesses operating in Romania, foreign investors, policy makers, and economic analysts. While not intended as an investment guide, it provides valuable information for anyone interested in Romania’s economic trajectory and its potential to evolve into a developed economy and a regional economic powerhouse in Southeast Europe.

The full report is available to all those interested in Romania’s economic future and the necessary steps to support its transformation.