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Romania’s Resilient Economy in 2023 Despite Global Challenges*
written by our Partner Editor Nine O’Clock, Mr. Sorin Ghinescu
Today, 6 nov 2023, the Romanian Competition Council held a conference in Bucharest to release its annual Report on Key Sectors of the Economy. Here are the findings.
In the face of global economic turbulence, Romania stood out as an economic stronghold in 2023, defying high inflation and regional conflicts. A recent report from Romania’s Competition Council, endorsed on November 2, 2023, scrutinized the competitive landscape across vital sectors of the nation’s economy.
Key highlights from the report revealed that Romania’s Gross Domestic Product (GDP) surged by 2.7% in 2023, a remarkable feat that positioned it among Europe’s top-performing economies. Impressively, this growth also translated to a substantial 6.5% increase compared to the pre-pandemic levels of 2019. Investment played a pivotal role in this economic surge, surging by 11.2%, and net exports contributed positively for the first time in recent years, with exports increasing by 0.3% and imports decreasing by 1.7%.
Furthermore, the report emphasized the stability in the number of companies operating in Romania in 2023, with a notable rise in the share of profitable businesses to 61%. The average net profit per employee for these companies witnessed a substantial 10.2% increase in real terms in 2023 compared to 2021.
However, the report didn’t overlook potential challenges and risks facing the Romanian economy, notably the dwindling competitive pressures in over a third of the 44 monitored industries. Sectors like automotive insurance, building materials, energy, and gas were highlighted. Concerns were raised regarding the energy crisis and price cap/compensation measures, which could reduce incentives for customer-supplier switching and competition in the electricity market.
The report also emphasized the importance of carefully designing and implementing price-capping measures, introduced by the government in 2022 in various markets, including wood, gas, electricity, and food. Learning from experiences in other European countries, it cautioned against setting price caps below production costs without adequate compensation or overly extending these measures.
Ultimately, the report underscored the Competition Authority’s commitment to fostering competitive market mechanisms and free price formation, all in the long-term interest of consumers.
Sources:
1. [Competition Council Report](#)
The Romanian Competition Council held a conference in Bucharest to release its annual Report on Key Sectors of the Economy******************************************************************************************
Sorin Ghinescu:
Sorin Ghinescu is a seasoned computer scientist and business professional with a diverse background spanning consulting, startups, and executive education. He holds a Computer Science degree from Polytechnica University of Bucharest and an Executive MBA from the United States. Sorin’s professional journey began in the field of computer science consulting, where he gained valuable experience working in Prague, Toronto, and Ohio, USA. His expertise has led him to lead a Business Development practice at a startup, demonstrating his entrepreneurial spirit and leadership skills. In addition to his technical expertise, Sorin possesses a keen interest in Romanian politics, economics, artificial intelligence, and geopolitical strategy. This blend of technical acumen and strategic thinking makes him a well-rounded individual with a unique perspective on the world.
Mr. Sorin Ghinescu Partner Editor Nine O’Clock
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