Let’s Grow: IFR Report for Romania 2023.

The report identifies renewable energy, transportation, and finance as key sectors for encouraging private sector-led accelerated growth. Romania can build upon the success of its burgeoning IT sector and further support the services sector by improving digital skills. The private sector can capitalize on recent global trends of relocalizing in the evolution of ecological value chains.

According to the Country Private Sector Diagnostic (CPSD), the private sector remains the engine of economic development in Romania, capable of generating quality jobs and enhancing connectivity, productivity, and competitiveness. The report highlights concrete examples of stimulating economic opportunities through green and digital transitions, including new green value chains where the private sector could benefit from recent global relocation trends.

Romania could also capitalize on its expanding IT sector’s success and further boost the services sector by enhancing digital skills, increasing tertiary education enrollments, and improving enterprise management practices. Opportunities to enhance agricultural productivity and value addition, and to advance climate-smart agricultural production, are also noted.

The CPSD identifies five cross-cutting constraints currently hindering development. Addressing these – skill deficits, misalignment with the labor market, business environment governance and institutional deficiencies, barriers to competition, chronic underfunding of innovation, and infrastructure and connectivity issues – could create a more dynamic and agile private sector and stimulate growth.

Rana Karadsheh, IFC Regional Director for Europe, emphasizes the report’s concrete recommendations for Romania to harness the strength of its private sector for the next stage of sustainable and inclusive growth. The IFC is committed to strengthening its relationship with the Romanian Government, contributing global knowledge, expertise, and capital to help the country seize these opportunities and create the quality jobs needed for the future.

Improving the business environment remains a country priority, while enhancing productivity and global competitiveness will require urgent and immediate investments in infrastructure. The report suggests Romania could leverage private investments in three critical sectors: energy (especially renewable energy), national and city-level transportation, and finance (through digitization to promote financial inclusion and green transition). Detailed analyses are provided to progress in these areas and stimulate productive, sustainable, and inclusive growth.

Anna Akhalkatsi, World Bank Country Manager for Romania and Hungary, highlights that Romania’s private sector is key to accelerating economic growth, transitioning to a green economy, and creating better jobs. Continued public sector investment in workforce skills, institutional foundations, and better infrastructure is necessary. Creating a truly competitive environment ensures that the private sector engages in key sectors like green energy and transport networks, benefiting everyone.

More on IFC’s press room: Un sector privat puternic este esențial pentru a stimula creșterea economică a României, potrivit unui nou raport IFC-Banca Mondială

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