Strong rebound in growth but weakened economic fundamentals

B3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in August 2021.

Swipe to view more

GDP
USD249bn (World ranking 45, World Bank 2020)
Population
19.3mn (World ranking 60, World Bank 2020)
Form of state Republic
Head of government Florin CITU (Prime Minister)
Next elections 2024, presidential and legislative
  • EU membership and fairly good international relations
  • Competitive industrial sector
  • Adequate business environment
  • Government instability
  • Arrears of state-owned enterprises
  • Banking sector vulnerabilities
  • High private-sector debt (notably in foreign currency)
  • Rapidly rising current account deficit, while net FDI inflows are declining
  • High external debt burden

Trade structure by destination/origin

(% of total, annual 2020)

Exports Rank Imports
Germany 22.8%
1
20.8% Germany
Italy 10.7%
2
8.9% Italy
France 6.7%
3
7.3% Hungary
Hungary 5.0%
4
6.2% China
Poland 3.7%
5
6.2% Poland

Trade structure by product

(% of total, annual 2020)

Exports Rank Imports
Road vehicles 17.1%
1
11.5% Electrical machinery, apparatus and appliances, n.e.s.
Electrical machinery, apparatus and appliances, n.e.s. 16.7%
2
8.7% Road vehicles
Other industrial machinery and parts 6.7%
3
5.7% Other industrial machinery and parts
Cereals and cereal preparations 3.8%
4
4.7% Medicinal and pharmaceutical products
Professional and scientific instruments, n.e.s. 3.5%
5
4.2% Manufactures of metal, n.e.s.
Although Romania’s regulations on late payments are more demanding than EU rules on the matter, the paying behavior of domestic companies remains problematic.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Legal proceedings are long and costly, therefore use of arbitration or a foreign European forum is worth considering since both arbitral awards and decisions rendered in EU countries are fairly enforceable.

Before commencing legal actions of any kind, however, it is essential to conduct thorough pre-legal action. Indeed, as time goes on, chances are that bad payers will become insolvent. In such cases, recovering the debt becomes practically impossible.

Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East