About Romania

Economic Overview - 2024

• Population: 19,06 million
• Area: 238,397 km²
• Growth in GDP: +5.6% in 2021; +4.8% in 2022; +2% in 2023; +0.9% in 2024; +2.5% in 2025 (forecast); +2.9% in 2026 (forecast)
• GDP/capita in 2024: 18,400 EUR
• Inflation: +5.1% in 2021; +13.8% in 2022; +10.4% in 2023; +5.6% in 2024; +3.8% in 2025 (forecast); +3.1% in 2026 (forecast)
• Export: EUR 92691,3 million in 2024 (+0.4%)
• Imports: EUR 126084,0 million in 2024 (+3.3%)     
• Monthly average gross wage in economy: EUR 1,112 in 2021; EUR 1,230 in 2022; EUR 1,667 in 2023; EUR 1,858 in 2024. 

 

Despite the challenges posed by the COVID-19 pandemic, Romania’s economy has demonstrated resilience and continues to recover steadily. Growth has been primarily driven by strong demand, bolstered by expansionary fiscal policies that have set the stage for future potential. While some macroeconomic imbalances persist, they are being addressed with a forward-thinking strategy aimed at gradual stabilization. Analysts project a modest yet positive GDP growth of approximately 2.5% in 2025, reflecting the ongoing recovery trend. The exchange rate is expected to adjust, while inflation is likely to decline, indicating a more stable economic environment. Although the real estate market has seen some price corrections, it still offers investment opportunities as valuations readjust. Meanwhile, the budget deficit, though still high, is showing signs of improvement compared to previous years, underscoring Romania’s commitment to fiscal stability and long-term economic sustainability.

Education

The public education system in Romania is structured across several levels, ensuring a comprehensive approach to learning for students of various ages and needs. As of 2023, the system is governed by the Pre-university Education Law and the Higher Education Law. The education system follows the International Standard Classification of Education (ISCED), divided into 9 levels, with levels 0 to 4 covering primary education and levels 5 to 9 corresponding to secondary and higher education. The system includes early education for children aged 3 months to 6 years, followed by primary education (grades 0-IV) lasting 5 years. Secondary education is divided into lower secondary (grades V-VIII) and upper secondary education, which typically lasts 4 years.

Students complete their studies with a National Evaluation Exam after grade VIII, which determines their placement in upper secondary education. After high school, students can pursue higher education through bachelor’s, master’s, and PhD programs.

Mandatory education in Romania lasts until the 10th grade (16 years old) and includes 4 years of primary school, 4 years of secondary school and 2 years of high-school. 146 000 students were enrolled in the 12th grade in the school year 2023-2024. In Romania, approximately 910 technical schools train their students in over 165 skills/jobs.

Romania is home to 27 university centers, including prestigious institutions such as Babeş-Bolyai University in Cluj-Napoca, Alexandru Ioan Cuza University in Iaşi, Politehnica University of Bucharest, the University of Bucharest, and the Bucharest University of Economic Studies. More than 538 000 students were enrolled public and private universities as of 2023, with 410 000 on a Bachelor level, 103 000 on a Master’s level and 22 000 on a PhD level.

Wages and Migration

As of July 2024, Romania's gross minimum wage will rise to RON 3,700 (approximately EUR 745), but it still falls short of the EU Directive's recommended 50% of the gross average wage. The average gross wage in 2024 is EUR 1,718, with Bucharest having the highest at EUR 2,127. In terms of sector-specific salaries, the highest wages are in the manufacturing of coke and refined petroleum products (RON 22,894 or EUR 4,601), followed by IT (RON 20,409 or EUR 4,100), air transport (RON 19,342 or EUR 3,888), and the extraction of crude oil and gas (RON 18,253 or EUR 3,666). On the other hand, sectors like clothing manufacturing, HoReCa, and leather tanning have the lowest wages, with average salaries ranging from EUR 900 to EUR 1,200.

Regarding unemployment, Romania’s unemployment rate in Q2 2024 is 5%, with an estimated 460,000 unemployed. The employment rate is projected at 51.75%. Youth unemployment is particularly high at 20.5%, placing Romania among the EU's top countries for youth unemployment. This is partly due to the education system's mismatch with labour market demands, leaving young people underqualified for available jobs.

As of 2024, approximately 3.15 million Romanians reside in other EU member states, making Romania the EU country with the highest number of citizens living abroad. Regarding employment patterns, a significant portion of Romanians abroad are engaged in short-term contracts, allowing them to work for several months and then return home for brief periods. Official data shows that Romanian residents make up notable groups in Spain, Italy and the UK.

Agriculture

As of 2024, Romania's agricultural sector continues to play a pivotal role in its economy, though certain metrics have evolved in the last decade:

• Agriculture's share of Romania's GDP has decreased to approximately 4.4%, reflecting a broader trend of economic diversification. Crop allocation in Romania is changing as a result of recurrent dry, hot summers and the 2020 harvest that was affected by drought. Farmers are planting more winter crops such as barley and wheat and reducing their spring crop plantings of non-irrigated corn.
• Around 23% of the Romanian labor force is employed in agriculture, the highest percentage in the European Union.
• The agricultural landscape remains highly fragmented, with nearly 3.5 million farmers, 90% of whom operate small farms of less than 5 hectares.
• In the 2024-2025 marketing year, Romania's wheat production is estimated at 10.45 million tons, influenced by favorable rainfall during April-May. In the first eight months of 2024, Romania exported cereals and cereal-based preparations worth EUR 2.4 billion, a decrease of 18% compared to the same period in the previous year.
• In 2024, Romania's animal farming included 1.82 million bovines, 3.16 million pigs, 11.72 million sheep and goats, and 78.75 million birds.
• Romania has access to a total of EUR 15.4 billion in agricultural funding under the Common Agricultural Policy (CAP) for the 2021-2027 programming period. This includes EUR 8.5 billion for direct payments to farmers under the first pillar, aimed at stabilizing farm income, and EUR 6.9 billion for rural development under the second pillar, which supports investments, environmental sustainability, and farm modernization. A portion of the direct payments, around EUR 1 billion, is dedicated to eco-schemes promoting environmentally friendly agricultural practices. These funds are designed to enhance Romania's agricultural resilience, support sustainable practices, and stimulate rural development.

• Romania has 2.8 million small farms, the highest number in Europe, with 1 in 3 farms in the EU being Romanian. Despite agriculture's limited economic contribution to GDP, the sector remains crucial for a large portion of the population, and traditional farming practices have positively impacted the balance between agriculture and nature. However, the number of farms decreased by 1% and agricultural land used fell by 1.7% in 2023 compared to 2020.  Romania had 2.86 million agricultural holdings using 12.55 million hectares of land, with an average farm size of 4.39 hectares, slightly down from 4.42 hectares in 2020. Small farms of under 1 hectare decreased by 1.3%, comprising 37.3% of farms under 0.5 ha and 16.3% of farms between 0.5 and 1 ha. Notably, 47% of the agricultural land was owned by the users, with 36.8% held by non-incorporated farms and 10.2% by incorporated farms.

Infrastructure

While still lacking, Romania’s infrastructure has seen notable improvements over the last few years, especially in terms of road traffic. Significant progress was made in road infrastructure, surpassing the milestone of 1,200 km of highways and express roads. The total reached 1,269 km by the end of 2024, with 194.77 km of new roads opened. The country is set to continue its ambitious plans in 2025, with expectations to add over 200 km of highways and express roads. Some key projects include connecting major cities like Craiova to Bucharest and Bacău, as well as further sections of the A7. Special attention is given to the construction of the A0 Beltway, which will link key highways. By the end of 2025, Romania could approach or exceed the 1,500 km mark, depending on the successful completion of ongoing projects. Since Romania joined the Schengen Area as a full member, crossing into or from Hungary and Bulgaria became easier.

The primary maritime port, Constanța, is the largest and most important on the Black Sea, handling a wide range of cargo and acting as a key transit point for goods moving between Europe, Asia, and the Middle East. Smaller ports like Mangalia also contribute to Romania's maritime traffic. Along the Danube, key ports such as Galați, Brăila, and Călărași support cargo transport, particularly bulk goods like coal and grain, while the Danube-Black Sea Canal further enhances trade by connecting the river to the Black Sea. The nearest port to Bucharest on the Danube is the Port of Giurgiu, located about 60 km south of the capital. On the Black Sea, the nearest major port is Constanța, which is around 225 km southeast of Bucharest. In general, the Danube is the most important and navigable river in Romania for both domestic and international shipping. Other rivers, although navigable in certain sections, are not used to the same extent for commercial navigation due to their size, depth, or limited connectivity to key trade routes.

Romania has a well-developed air transport network, with 16 airports in operation, of which 8 handle international traffic. The country's main airports are Henri Coandă International Airport in Bucharest, the largest and busiest, followed by Cluj-Napoca International Airport, Timișoara Traian Vuia International Airport, and Iași International Airport. Henri Coandă Airport alone handles over 14 million passengers annually, making it a major hub in Southeast Europe. Romanian airports offer numerous international flights, including destinations to Denmark, such as Copenhagen, Billung and Aarhus. Plans for airport development include the construction of new airports and expansions, like the planned Iași International Airport expansion.

IT&C

Romania's IT industry is experiencing rapid growth for over a decade now, driven by government initiatives aimed at digitalizing small and medium-sized enterprises (SMEs) and a focus on improving the country’s digital infrastructure. In 2023, the PNRR Digitalization of SMEs program was introduced to open up new opportunities for tech companies to provide services and products to businesses. By 2030, Romania’s digital economy could reach €52 billion, accounting for nearly 10% of the country’s GDP. Despite this growth, Romania still faces challenges in closing the ICT gap with other countries. The tech sector benefits from high-quality telecom networks and internet speeds, particularly with the rollout of 5G services. The country's ICT industry spans software development, telecommunications, electronics manufacturing, and data processing, with Bucharest generating 63% of national IT revenue. Romania is also a leader in Europe for certified IT specialists, with nearly 192,000 software developers working in the country as of 2023.

The software development industry in Romania is a key contributor to GDP, generating €3.2 billion in revenue in 2023. The industry has seen a growth in the number of tech professionals, from 140,000 in 2020 to nearly 192,000 in 2023. However, there has been a slight decline in the number of software development businesses, and the market size has decreased by 5.4% per year between 2018 and 2023. Romania's legal framework for e-commerce, cybersecurity, and data protection supports the growth of the IT sector. The government has prioritized the digitalization of the public sector, investing in cloud services, digital identity, and cybersecurity. Romania's ICT sector is further enhanced by the European Recovery and Resilience Facility, with a focus on digital transformation across public services, SMEs, and infrastructure.

The government’s IT strategy includes the creation of a Governmental Cloud to improve public sector efficiency, with a $2.08 billion budget for digital services and cybersecurity initiatives. Additionally, Romania aims to digitally transform at least 3,000 SMEs and support business and innovation sectors through investments in IT, climate action, and digital skills development. The overall goal is to foster a secure, resilient, and modern digital infrastructure that benefits both public and private sectors, contributing to Romania's broader economic and digital growth.

Danish Companies

As per the most recent data available on the Commerce Registry (ONRC) for 2023, the number of Romanian companies with Danish capital amounted to 544 companies, with an average participation of 86%. The main areas in which Danish capital investments were made are: transport, food industry and agriculture, internal and foreign trade. Most of the Danish owned companies in Romania are located in Bucharest, followed by Transylvania.

A large number of the Danish companies looking to enter the Romanian market have done so through the Commercial Department of the Bucharest Mission. We are running an informal Business Club (the Danish Romanian Business Association, DRBA) and we are part of the largest business organisation in Romania, which is the main discussion partner of the Romanian Government