Key Takeaways

• Strategic EU location with skilled, multilingual workforce and competitive costs.

• Economy: High-income, EU-integrated, with steady growth, low unemployment, and strong EU market integration.

• FDI surge: Robust rebound in 2024, led by manufacturing, business services, R&D, and infrastructure.

• Tourism recovery: Rapidly growing, with strong momentum in cultural, coastal, and eco-tourism.

• Outlook: Positive long-term potential supported by EU funding, reforms, and investment opportunities.

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Overview & Location

Romania, Southeast Europe’s 12th-largest country (~238,400 km²), borders Ukraine, Moldova, Bulgaria, Serbia, Hungary, and the Black Sea. Its diverse geography includes the Carpathian Mountains, fertile plains, and the Danube River leading into the Delta.

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Demographics

Population: ~19 million (2024), down from 23 million in 1990 due to low birth rates, high emigration, and aging. Life expectancy is ~75 years, with notable regional disparities and a shrinking workforce.

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Economy

Romania is a high-income, EU-integrated economy with steady growth, a resilient labor market, and increasing integration into European value chains. Strong consumer demand, access to EU funding, and an expanding investment base support long-term potential, while ongoing reforms in infrastructure, skills, and fiscal sustainability will further enhance competitiveness.

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Investment Climate & Business Environment

FDI projects surged in 2024—the strongest since 2019—driven by manufacturing, business services, sales & marketing, and R&D. Romania remains attractive thanks to EU market access, a skilled multilingual workforce, and competitive labor costs. Businesses can establish SRLs, SAs, branches, or subsidiaries under a competitive tax regime, with requirements for VAT registration, digital reporting (SAF-T, e-invoicing), and IFRS/RAS compliance. While regulatory unpredictability and frequent tax changes are challenges, reforms are underway to improve stability and transparency.

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Key Sectors & Industries

• FDI Sectors: Manufacturing, business services, sales & marketing, R&D, infrastructure, and EU-funded projects.

• Core Industries: Automotive, ICT, chemicals & materials, energy & utilities, food & beverage, real estate, and tourism.

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Tourism & Culture

Tourism is expanding rapidly, with over 14 million arrivals in 2024. Bucharest, Constanta, Brasov, Sibiu, Cluj and the Danube Delta are top destinations, while coastal, domestic, and ecotourism segments continue to grow.

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Risks & Outlook

While Romania faces challenges from fiscal pressures and regulatory complexity, its strong EU ties, skilled workforce, and sectoral growth opportunities position it as one of the most dynamic markets in Southeast Europe. With sustained reforms and effective use of EU funds, Romania is well placed to consolidate growth, attract investment, and strengthen its role in the regional economy.