Download - Auraș Marinescu Bogdan-Tiberius Paşca
Auraș Marinescu
Bogdan-Tiberius Paşca
European affairs advisers
Directorate for Employment and Equal Opportunities Ministry of Labour, Family, Social Protection and Elderly
2
Romania the largest market in South Eastern Europe
Bucharest
1000 km radius
1500 km radius
Bucharest BLACK SEA
Area: 238,391 km2
(9th largest in EU)
Population: Over 20 million
(7th largest in EU)
Capital city: Bucharest
2 million
European
Union status
Member since
January1st,2007
Affiliation: EU,NATO,WTO,
WB, IMF.
Domestic
currency:
LEU (RON)
1EUR=4.4190 RON
1USD=3.279 RON
(Annual average -
2013)
Official
language: Romanian
Administ.
division:
41 counties and
Bucharest
5,2%
8.5%
4,2%
7,9%6,3%
7,3%
-6,6%
-1.1%
2.2%0.7%
3,5%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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Significant Potential for Growth
2013
IMF: Romania among the first 10 EU countries with the highest GDP growth in 2014;
Sourc
e: E
UR
OS
TA
T
Source: National Institute of Statistics; GDP EU 28
Source: Eurostat
GDP Growth Rate
Romania 3.5%
Poland 1.6%
Hungary 1.1%
Slovakia 0.9%
Bulgaria 0.9%
Czech Rep -0.9%
Slovenia -1.1%
EU 28 0.1%
GDP 2013: 3.5% - the highest in EU
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Inflation Rate
Inflation Rate in Romania
Source: Eurostat
Target: 2014: 2.5%
1946
5183 5213
9059
7250
9496
3488
2220
18152138
2700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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Annual Inward FDI
Inward FDI Flows
2013
2013: EUR 2.7 bill.
Stock: EUR 60.0 bill. (1990–2013);
Source:
Vienna Institute for International Economic Studies
¹ National Bank of Poland
Source: National Bank of Romania
EU
R m
illio
n
Czech Republic 3760
Romania 2725
Hungary 1768
Bulgaria 1092
Serbia 779
Slovakia 445
Croatia 437
Poland¹ -2200
6
Netherlands Austria Germany France Italy
22.4%
13229
18.5%
10920
11.0%
6499
8.9%
5272
5.0%
2930
Cyprus Greece Switzerland USA Luxemburg
4.5%
2687
4.3%
2529
3.7%
2194
3.1%
1809
2.3%
1368
Top 10 Investing Countries
1
Source: National Bank of Romania
STOCK 1990-2012: 59126 mill euro
2 3 4 5
6 7 8 9 10
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Human Capital
Demographics
Talent pool
Cities with more than 100,000 inhabitants
more than 1,000,000 inhabitants
300,000 – 400,000 inhabitants
200,000 – 300,000 inhabitants
100,000 – 200,000 inhabitants
Source: National Institute of Statistics
Young population (more than 50%
under 40 years old)
Over 20 million people
108 universities, 629 faculties
214,800 university graduates/yr
Availability of technical engineers
High industrial experience
Flexibility
Foreign language skills
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Labor Cost
Gross average monthly wages
EUR
Source: Vienna Institute for International Economic Studies
Romania will hold on its competitive advantage related to labor cost;
The employers enjoy a flexible labor code
Romania has the second-lowest average wage in EU
Romania still offers goods and utilities at a lower price in comparison
with European average
179204
267
326
428 474 445 460 471 479
0
50
100
150
200
250
300
350
400
450
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1525
993
846800 771
479383
0
200
400
600
800
1000
1200
1400
1600
Slovenia Czech Rep. Poland Slovakia Hungary Romania Bulgaria
Source: National Institute of Statistics;
Gross average monthly wages
2012 - EUR
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BUCURESTI
222 thou
State: 67% Private: 33%
CLUJ-NAPOCA
SIBIU
TIMISOARA
BRASOV
IASI
CRAIOVA
GALATI
57 thou
S: 93% P: 7%
55 thou
S: 90% P: 10%
40 thou
S: 89% P: 11%
46 thou
S: 69% P: 31%
30 thou
S: 89% P: 11%
22 thou
S: 92% P: 8%
18 thou
S: 87% P: 13%
12 thou
S: 86% P: 14%
PITESTI
12 thou
S: 79% P: 21%
TARGU - MURES
BUCURESTI
10 Major University Centers
CONCLUSIONS
Romania’s accession to the EU improved the Romanian business environment, improvement felt by means of a more stable legal framework and the existence of more transparent business practices.
The obstacles from the free movement of goods and services were removed or in process of removal. A common legal framework provided by the Single Market will increase the overall efficiency of the Romanian economy by improving the resources allocation, increasing of specialisation degree and the competitiveness stimulation.
By improving the business environment, Romania is already an attractive target for foreign investments. Attracting a huge inflow of foreign investments will directly and rapidly ensure the access to an effective management, modern technologies, as well as to the labor market segmentation.