Romania: The CEE’s Next Economic Powerhouse

Did you know that Romania is expected to become the second largest economy in Central Eastern Europe by the end of the year? This country went through a huge transformation over the last few decades and presently attracts foreign investors from all over the world. How did this happen and why is it worth investing there? This article will provide you with the answers.

Romania’s dynamic economic development over recent years has been surprising. In my opinion, the country still has huge potential for growth powered by strong macroeconomic and demographic fundamentals. In 1Q 2019, Romania’s GDP grew by 5.1%, increasing by 4.1% in 2018 – double the total aggregated result recorded for the entire Eurozone at the time. A well performing market and the good condition of its economy is clearly evidenced by the volume of investments on its real estate market. According to forecasts, this volume is expected to exceed EUR 1.1 billion by the end of 2019.

On the one hand, the market is dominated by international buyers. On the other hand, the number of domestic players interested in acquiring real estate is increasing. They accounted for 14% of the market at the end of 2018, while…