Romania: Economic situation

Special Developments
Government reshuffle June 2023
On 15 June 2023, there was a planned change at the head of the government, with Marcel Ciolacu (PSD) appointed as the new Prime Minister. Former Prime Minister Nicolae Ciucă (PNL) was elected President of the Senate. Although the change at the top of the government was envisaged in the original coalition agreement, the current government consists of only two parties after the departure of the junior partner, the UDMR party. Two ministries (Sport and Entrepreneurship/SMEs and Tourism) have been dissolved and their competences have been transferred to other ministries.
Super election year 2024
2024 is expected to be a super election year in Romania with 4 elections:
Parliamentary election
Presidential election
Regional Election
European elections

Impact of the war in Ukraine:
Romania shares around 600 kilometres of border with Ukraine.
The general security assessment is CURRENTLY STABLE, there are no known restrictions regarding logistics, business trips, etc.
Schengen
In the vote on the enlargement of the Schengen area by the EU interior ministers on 8.12.2022, the accession of Romania (as well as Bulgaria) failed due to the veto of Austria and the Netherlands (although the latter mainly argued against Bulgaria’s admission). The topic is picking up speed again in the wake of current political developments.
Economic relations with Austria
Austria is the second largest foreign investor in Romania with a share of around EUR 11.5 billion or just under 11%. Austrian exports to Romania reached a new record level with an increase of +26.0% to just under EUR 3.76 billion. In the first half of 2023, the positive trend continued, with +5.5% or a half-year figure of EUR 1.98 billion, albeit in a weaker form.
Romania is thus Austria’s 14th most important export market and 19th most important import partner.
Business opportunities for Austrian companies
Romania is of interest to Austrian companies in many sectors of the economy on several levels:

as an interesting sales market for products such as machines and tools, accessories, etc. as well as services,

as a reliable nearshoring sourcing market within the EU,
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as a potential location for a production and/or distribution office.
For some time now, there has been a change in the structure of Austria’s foreign trade with Romania. This is mainly due to Romania’s evolution from a low-wage country to a developed, industrialized EU country. For example, the export of automotive supplier parts is rising sharply. On the other hand, the increased purchases in the areas of infrastructure, transport, energy including renewable energy, environmental technology, agriculture and forestry promise good export opportunities for Austrian companies. Romania could increasingly establish itself as a near- and reshoring destination for various industrial and IT processes.
For the following sectors, the Foreign Trade Center Bucharest has prepared further information in the form of short and concise “fact sheets” – simply request it from us!
Automotive

Construction & Transportation Infrastructure
IT, Software & Telecommunications
Energy, Oil & Gas
Health & Medical Technology
Metalworking industry
Fashion & Textiles
Synthetics
Food & Beverage