FIC has been monitoring how investors respond to various policy initiatives and the broader macroeconomic context through its Business Sentiment Index (BSI) since 2013. The spring edition results were presented during the event and show a moderation of our members’ optimism.
The attractiveness of Romania compared to peer locations has reached the lowest level in the past 6 years, with more than half of respondents considering Romania less attractive than peer locations from Europe or other countries (more than double the previous edition's 24%). According to the FIC BSI, Romania is uncompetitive in terms of transparency and consistency of policy application (88%), regulatory burden (86%), bureaucracy (78%), fiscal burden (61%), and infrastructure (47%). The availability of an adequate workforce is the only area still seen as competitive (60%).
Planned capital investments by FIC companies for 2025 are lower than in the autumn edition, with only 35% of respondents planning more investments in the next 12 months. 30% of companies plan to reduce investments, showing a decrease in sentiment among investors by 8 percentage points from the previous year (level comparable to COVID period and the beginning of the war in Ukraine). 88% of FIC respondents are considering also cost reductions in the upcoming period. The results show a trend of delaying investments due to the political uncertainty, geopolitical context, budget deficit and unpredictable fiscal measures.
When it comes to workforce planning, half of the respondents expect the number of employees to remain stable in 2025, indicating a period of stagnation in hiring activity. At the same time, 27% anticipate a reduction in workforce size, indicating a potential cooling in labor market dynamics.
However, investors remain optimistic when it comes to business, more than half of the respondents expect growth in the domestic market, and only 12% expect a contraction. In the export market, 30% expect growth, and 57% expect stagnation. Overall, almost half of the respondents expect business growth, while 39% expect stagnation.
Simultaneously, investors are confident in Romania’s opportunities:
- The new EU economic context, with Western European businesses relocating some activities and production to Eastern Europe to reduce costs.
- The energy transition, if appropriately supported by authorities, has the potential to generate business expansion.
- EU funds also remain a key opportunity for business development in Romania.
- An important milestone for Romania was the recent full adhesion to Schengen and we expect this reinforcement of Romania’s integration with the EU to further stimulate investments in our country.
- Romania’s accession to the OECD would represent another important step in attracting foreign investment to Romania and improving government effectiveness.
- Additionally, the EU has the chance to become stronger by focusing on enhancing the competitiveness of EU businesses and reducing bureaucracy. This shift could realign the coordinates for the European economy to grow in the future, with accent on new industrial landscape for Romania (defence, aerospace and cybersecurity, rare earth-minerals, energy etc.)
Also, during the event, the international institutions briefly presented reports on Romania, highlighting similar concerns as the BSI results regarding the budget deficit, the political instability and the delay of fiscal consolidation that was expected to be implemented last year. The speedy growth in governmental spending is one of the most worrying trends observed by the all institutions. It was underlined that the country should focus on the PNRR reforms – fiscal, green transition, education, improve business climate (clear and predictable environment) to ensure medium-long term economic development. The country must ensure that it does not lose any EU funds under any circumstances. All institutions pointed out the possible negative impact of the new tariffs announced by the US administration not only to Romania’s and EU economies, but also indirectly, through effects on international trade.
At the same time, several opportunities for Romania were discussed, such as the general shift at the level of EU states when it comes to spendings for security & defense, with more financial instruments (at the level of EU and international financial institutions) that could be used by countries to support this sector (military equipment, infrastructure, cybersecurity, etc.). Regarding OECD accession, both national and OECD representatives acknowledged the significant progress made by Romania in areas such as education, taxation, governance, and antibribery. Romania is on track to join the OECD in 2026.
Romania still has the potential to reverse the economic trends captured by the macroeconomic outlooks if the Government urgently prepares reforms anchored in transparency and dialogue, in key areas, such as reducing spending, achieving fiscal consolidation, and taking advantage of new opportunities in investments, energy, natural resources, and defense. At the same time, Romania's membership in the EU and NATO, along with the potential accession to the OECD, remain strong advantages for stimulating and attracting investments.
FIC remains committed to serving as a trusted partner in advancing reforms, supporting predictability, and reinforcing Romania’s position as a competitive and attractive destination for investment.