The World Bank ranks Romania as number 37 out of 189 countries in its Doing Business 2016 report, ahead of countries like Italy, Hungary, Croatia and Greece.
The World Bank puts Romania at number 37 out of 189 countries in its Doing Business 2016 report. Although Romania’s score this year is by 0.19 points higher than last year, Romania has retained its position in this annual ranking compiled by the World Bank. The report looks at the economies of 189 states based on criteria such as starting a business, getting credit, getting electricity and trading across borders, but does not take into account aspects such as security, macroeconomic stability and corruption.
Romania is ahead of countries like Italy, Bulgaria, Croatia, Hungary, Turkey and Greece. Singapore, New Zealand and Denmark top the ranking as the countries with the most friendly business environment. In terms of starting a business, Romania ranks 45th, 8 places lower than last year. Starting a business in this country takes eight days and requires the completion of five different procedures. The World Bank also looks at the impact of regulatory constraints affecting small and medium-sized companies in areas such as paying taxes, registering property and trading across borders.
The report also shows that Romania has made the use of an electronic auction registry mandatory, has improved provisions on treatment of contracts during insolvency and has reduced labour taxes and mandatory contributions. It also reduced the social security contribution rate paid by employers from 20.8% to 15.8% from October 2014.
Romania has seen significant progress with regard to economic growth and fiscal consolidation, said Ismail Radwan, the World Bank’s lead public sector specialist who attended a foreign investor summit in Bucharest. He said Romania has improved its business environment, which has become more attractive, while also pointing at three key areas where progress can still be made, namely the business environment, improving infrastructure and good governance. Ismail Radwan also said that Romania has a thriving IT industry, and that untapped opportunities still remain in tourism, agriculture and construction.