Romanian economy after one year of Russian war in Ukraine: resilient

How is the Romanian economy doing after one year since the Russian army invaded Ukraine? It is unexpectedly resilient, attracting new investments and relocations of international players.

Are you considering market expansion or relocation to the Romanian market? Perhaps the FRD Center can be of assistance to you. More details at www.frdcenter.ro

It is a crisis, but Romania's economy grew by 4.8% last year, which is rather unexpected. An increase of 12% was registered in the construction and over 20% in the services sector.

According to the National Bank of Romania, the foreign direct investments (FDI) into Romania increased by 9% YoY to EUR 9.6 bln in 2022.

A direct consequence of the Russian aggression in Ukraine was also the decision of the Finnish company Nokian Tyres to relocate from Russia to Romania, following an investment of 650 million euros. They have disclosed their plans to build the "world's first zero-CO2 emissions" tire plant in Romania.

In 2022, the total amount of foreign investments in Romanian companies exceeds 50 billion euros. The top 3 sources of foreign investment are the Netherlands (9.3 billion EUR), Germany (5.4 billion EUR) and Austria (5.3 billion EUR), according to the data of the National Office of the Trade Registrer analyzed by the ONV LAW. More details at https://business-review.eu/business/legal/more-than-eur-50-billion-of-foreign-investments-in-sectors-of-the-romanian-economy-in-2022-241055

According to players in the field, the Romanian business process automation (BPA) industry will grow by 15% in 2023.

Another strategic sector presenting numerous opportunities is the Romanian AGRICULTURE.

For example, Holde Agri Invest, a Romanian company that exploits agricultural land, reported consolidated revenues of 117.5 million lei in 2022, an increase of 87%, and an IFRS net profit of 11.4 million lei.

The Romanian Prime Minister recently announced that, for the year 2023, the Government has a budget of 331 million lei for investments in irrigation and it is possible to exceed an area of 2 million ha prepared for irrigation in Romania.

In the context of the Russian war in Ukraine, Romania, one of the largest producers of corn and sunflower seeds in the EU, as well as one of the main grain exporters, has enormous potential to transform Romanian ports into a "Power House" of the grain trading market, estimated at over 3.5 bnEUR.

What are the potential?Opportunities for Market Expansion, Trade and Investment in Romania in the sector of AGRICULTURAL TECHNOLOGY AND IRRIGATION? For more details consult the FRD Center analysis at the link: https://www.frdcenter.ro/wp-content/uploads/2022/11/MARKET-EXPANSION-TRADE-INVESTMENT-OPPS-IN-ROMANIA-2022-FRD-Center.pdf?

In regards to other opportunities of investment and relocation to Romania, according to international investors, technology is one of the promising sectors in 2023, mainly as it supports the transition to green energy.

For more details about the production of Green Hydrogen in Romania, consult the FRD Center report at: https://www.frdcenter.ro/hydrogen-production-in-romania/

The contribution of the non-reimbursable funding to the potential growth of the Romanian GDP in 2023 is generally recognised. In total,12 programmes worth around 5 bnEUR are available to the local public authorities as well as to companies. The usage of this money will generate demand from local as well as international expertise and technologies for Production/assembly/recycling of batteries or solar cells – photovoltaic panels, for Ensuring energy efficiency in the industrial sector, for Digitisation of SMEs, for Waste management and many others.

Current FRD Center clients looking to expand to the Romanian market, including through investment, strategic partnerships and acquisition of local players, are active in engineering, med-tech, building technologies, electric and electronics, automation, luxury manufacturing.

Are you considering strategic partnerships, market expansion or acquisitions of local players on the Romanian market? Perhaps the FRD Center can be of assistance to you. Email us at [email protected]