Number of companies that suspended activity in Q1 2024 increased by 33% compared to Q1 2023.
Most suspensions were in Bucharest, Cluj, Brasov, Iași and Timiș counties.
The largest increases in suspensions were in Dâmbovița, Brăila and Tulcea counties.
Most suspensions were in wholesale and retail trade, vehicle repair, and construction.
The Romanian economy is facing a number of challenges, including:
High inflation: Inflation in Romania is currently at 15.1%, well above the EU average of 8.1%.
Rising interest rates: The National Bank of Romania (BNR) has raised interest rates in an effort to combat inflation. This has made it more expensive for businesses to borrow money.
Labor shortages: Romania is facing a labor shortage, as many young people have emigrated to other EU countries in search of better job opportunities.
War in Ukraine: The war in Ukraine has had a negative impact on the Romanian economy, disrupting supply chains and driving up energy prices.
The Romanian government has taken a number of measures to try to address these challenges, including:
Cutting taxes: The government has cut taxes in an effort to stimulate the economy.
Increasing investment: The government has increased investment in infrastructure and other projects.
Raising the minimum wage: The government has raised the minimum wage in an effort to help workers keep up with the rising cost of living.
However, these measures have not been enough to prevent the number of companies that are suspending activity from increasing. The government will need to take further action to address the underlying problems facing the Romanian economy if it wants to prevent a further increase in the number of business failures.
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Source: Ziare.com
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