Romania is quietly outpacing the economies of stagnating neighbors as Bucharest benefits from reshoring, EU funding and a strong currency support, Romania Insider reports. The IMF expects Romanian real GDP to grow 3.1% in 2023, surpassing 1.8% and 0.5% for Hungary and Poland, respectively.
Romanian industry has been climbing the value chain, moving from mainly garment and textile exports in the 1990s to heavy manufacturing and information technology today. EU membership and the subsequent opening of its borders aided Romania’s development and boosted the country to upper middle-income status.
Russia’s war on Ukraine has also helped: Companies fleeing Russia are finding Romania an especially attractive destination, prompting FDI to reach its highest level since the country joined the EU in 2007. Despite its history of corruption and political instability, Romania has already drawn over €6 billion in grants and cheap loans from the EU and aims for €10 billion a year