Romania holds the 49th position in the worldwide competitiveness ranking for the year 2025
Switching Gears: A Closer Look at Romania's 2025 Competitiveness Ranking
Taking a gander at the 2025 World Competitiveness Yearbook, Romania finds itself nestled in 49th position, according to an IMD report. CIT-IRECSON, the Technological Information Center, publishes this report in Romania, with Switzerland, Singapore, and Hong Kong snagging the top three global spots [1][2][3].
Climbing and Slipping: Breaking Down the Numbers
When it comes to economic performance, Romania has taken a nose dive, dropping a sharp nine spots, ranking 56th. This decline is due to a slew of less-than-stellar economic indicators, including a measly 0.8% real GDP growth in 2024, an unfavorable current account deficit of -8.3%, inflation creep of 5.6%, and a chunky 25% of household budgets spent on food. Youth unemployment remains a persistent issue, with 31.5% of young job seekers drawing blanks in the employment department [1][2].
On the flip side, improvements were made in government efficiency, with Romania leaping four spots into 44th place. These gains are attributed to a more robust institutional framework and updated business legislation. Notably, strides were made in fiscal policy (+3 positions) and the societal framework (+3 positions). However, concerns remain over an eight-place drop in public finance performance, largely due to a hefty budget deficit (-8.68% of GDP in 2024) and public debt (57.44% of GDP) [1][2].
Business efficiency saw a rosy uptick, with the country rising four places to 50th position, a testament to increased productivity, labor efficiency, and a more welcoming financial climate [1][2]. Infrastructure strides also contributed to Romania's overall position, as improvements were observed in basic infrastructure, technological infrastructure, health and environment, and education [1][2].
Roadblocks Ahead: Navigating Economic Challenges
Despite the advancements in government and business efficiency and infrastructure, Romania grapples with significant economic hurdles. The slump in economic performance is tied to anemic economic growth, stubborn inflation, a sizable current account deficit, and persistently high youth unemployment. Fiscal concerns persist, with a mammoth budget deficit and elevated public debt levels, contributing to an eight-place dip in the public finance subcategory [1].
Flashing the Lights: Offering a Rundown
| Category | Rank 2025 | Change from Previous Year | Key Factors ||----------------------|-------------|----------------------------|--------------------------------------------------------|| Overall Competitiveness | 49th | - | Mixed performance || Economic Performance | 56th | Down 9 places | Low GDP growth, high inflation, youth unemployment, current account deficit || Government Efficiency | 44th | Up 4 places | Stronger institutional framework, improved fiscal policy and societal framework || Business Efficiency | 50th | Up 4 places | Enhanced business environment and operational efficiency || Infrastructure | 45th | Up 6 places | Development in physical and organizational infrastructure || Public Finance | Not specified| Down 8 places | High budget deficit and public debt |
Romania's 2025 competitiveness reflects a complex landscape, with progress in governance and infrastructure marred by ongoing economic and fiscal challenges [1][2].
Sources:
[1] Irina Marica, "Romania Last among EU Countries in Global Competitiveness Ranking 2025," Romania Insider, March 15, 2025, https://www.romania-insider.com/romania-last-eu-competitiveness-ranking/
[2] "IMD World Competitiveness Yearbook 2025," International Institute for Management Development (IMD), 2025, https://www.imd.org/research-centers/world-competitiveness-center/rankings-and-data/
[3] Photo credit: N**atanael Alfredo/Dreamstime.com
- Despite the strides made in government efficiency and business efficiency, Romania still faces substantial economic challenges, particularly in the areas of economic performance, public finance, and high youth unemployment.
- The country's 2025 competitiveness ranking shows a mix of progress in governance and infrastructure, but ongoing economic and fiscal difficulties remain a concern.
