Romania ranks 49th in the 2025 edition of the World Competitiveness Yearbook, a report compiled by the International Institute for Management Development (IMD) and published in Romania by CIT-IRECSON, the Technological Information Center. The global top three are Switzerland, Singapore, and Hong Kong, according to a press release quoted by news agency Agerpres.
Compared to last year, Romania fell nine places in the “Economic performance” category, landing in 56th place, but improved in other areas: it rose four positions in “Government efficiency” (44th), four positions in “Business efficiency” (50th), and six positions in “Infrastructure” (45th).
Experts from CIT-IRECSON attribute the drop in economic performance to weaker macroeconomic indicators, pointing to a real GDP growth of just 0.8% in 2024, a current account deficit of -8.3%, inflation of 5.6%, and food costs that account for 25% of household budgets. Youth unemployment remains high, with 31.5% of young jobseekers unable to find employment.
Improvements in government efficiency were driven by a better institutional framework and enhanced business legislation, with notable gains in fiscal policy (+3 positions) and the societal framework (+3 positions). These improvements offset an eight-place drop in public finance performance, largely due to a high budget deficit (-8.68% of GDP in 2024) and public debt (57.44% of GDP).
Romania’s rise in business efficiency is linked to increased productivity and labor efficiency (+9 positions), better management practices (+5), and a more business-friendly financial environment (+9).
Meanwhile, infrastructure improvements also contributed significantly to Romania’s overall position. Basic infrastructure rose seven places, technological infrastructure five, health and environment nine, and education four.
The 2025 report highlights the need for urgent measures to strengthen Romania’s economic performance and address inflationary pressures, government debt, and the current account deficit. CIT-IRECSON also notes business community concerns over political instability and the risk of business failure.
Globally, Switzerland leads the competitiveness ranking, overtaking Singapore, which falls to second place. Hong Kong rose to third, followed by Denmark (down one spot) and the United Arab Emirates (up two spots).
Within Europe, five countries made it into the global top ten: Switzerland, Denmark, Ireland, Sweden, and the Netherlands. The most significant competitiveness gains in Europe were seen in Lithuania (+9), Latvia (+7), Hungary (+6), Germany (+5), and the Czech Republic (+4). The largest declines occurred in Poland (-11), Belgium (-6), and Slovakia (-4).
irina.marica@romania-insider.com
(Photo source: Natanael Alfredo/Dreamstime.com)
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