Romania quietly catches up with richer neighbors, helped by EU cash

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Romania quietly catches up with richer neighbors, helped by EU cash
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Romania – long one of Europe's poorest countries, and burdened with a reputation for corruption – becomes eastern Europe's second largest economy after Poland.

BUCHAREST, Romania – Romania’s economy is set to outpace its stagnating neighbors this year, helped by European Union funding, currency stability, and foreign investment driven in part by reshoring fromThe International Monetary Fund expects a 3.1% expansion, while even the European Commission’s 1.8% growth forecast would place it well ahead of Poland – seen growing 0.

Prime Minister Nicolae Ciuca has said the government aims to tap more than 10 billion euros a year, equivalent to about 4% of GDP, of about 90 billion euros of EU funding available to Bucharest through to 2027. “This is an entirely new development, and I would caution anyone [in Hungary] against weakening the forint further, or not raising the minimum wage,” said Sandor Baja, managing director for the Czech Republic, Hungary, and Romania at staffing company Randstad.

A 2022 survey by Ernst&Young showed more than half of 101 foreign companies planned to set up or expand operations in Romania, primarily in supply chains and logistics, ranking it fourth in Europe by intention to invest.

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