Romania on track to reach 100 billion euros in exports
Romania is on track to reach the milestone of 100 billion euros in exports this year. The majority of exports will go to countries such as Germany, Italy, Poland, Slovakia, the Czech Republic, and Hungary.
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According to statistical data released by the National Institute of Statistics, Romanian companies’ exports totaled 38.5 billion euros in the first five months of this year. Projections indicate that by the end of the first semester, we could reach 50 billion euros.
The majority of exports consisted of machinery and transport equipment (47.1%) and other manufactured products (29.6%). 72.7% of exports were destined for European Union countries, with intra-EU27 trade in goods totaling 28 billion euros.
Romanian Exports Reach 10.537 Billion Euros
In 2021, Romania exported goods and services worth 10.537 billion euros, representing 72.7% of total exports. Despite a 2.9% decrease compared to the first five months of the previous year, the trend is positive and shows that the economy has adapted to the challenges posed by new tax changes and especially by inflation, the highest in the EU this year,” said Cosmin Bucur, Managing Director of Moneycorp Romania.
<p"The evolution of Romanian exports will depend mainly on how our main trading partners in Europe, Germany, Italy, and France, will overcome the problems caused by inflation, the restructuring of the economy in the context of the war in Ukraine, and the reconfiguration of production and supply chains. The premises are still in the uncertainty zone, but considering the new
The European Economic Policy and Opportunities for Romania
Brussels is planning to implement a new economic policy to boost the European economy, and the prospects are looking positive,” stated Cosmin Bucur. For Romania, the upcoming period will bring a wide range of opportunities as Romanian products are in an attractive price-quality ratio, ranging from construction materials to agri-food products, textiles, and machinery.
Dacia, Romania’s main exporter, is introducing new car models, along with Ford. The software industry continues to show positive growth, and chemical exports are on the rise. The economic restructuring post-pandemic is starting to yield positive effects, with many companies already benefiting from the new policies.
Exporturile României în creștere
Managerul Moneycorp a declarat că România își optimizează costurile și lansează noi game de produse și servicii adaptate noilor realități economice. Această schimbare vine pe fondul unei creșteri a exporturilor românești.
Produsele de export “Made in România”
În ultimul an, România a exportat o varietate de produse, printre care se numără mașinile și dispozitivele electrice, mijloacele de transport, mobilierul, materialele de construcții, produsele agroalimentare, produsele chimice și masele plastice, produsele metalurgice, textilele, confecțiile, pielăria, încălțămintea și produsele minerale.
În 2023, exporturile României au totalizat 93 de miliarde de euro, în creștere cu 1,3% față de anul anterior. Proiecțiile pentru 2024 indică o creștere și mai mare, atingând un nivel de 100 de miliarde de euro, influențate și de efectele inflației.
Top Destinations for Romanian Exports
Romanian exports have seen a significant increase in recent years, with top destinations including Germany (21.3%), Italy (10.7%), France (6.8%), Hungary (6.6%), Bulgaria (4.1%), Poland (3.7%), Turkey (3.5%), Czech Republic (3.3%), Netherlands (2.9%), and the United Kingdom (2.9%).
Improving Trade Balance
After a significant improvement in the trade balance deficit last year, reaching 28.9 billion euros, a decrease of 5.1 billion compared to 2022 (-15.1%), hopes are high for continued improvement. However, the first five months of this year have seen a growth in the trade balance deficit (FOB/CIF) to 12.288 billion euros, an increase of 1.230 billion euros (+11.1%) compared to the same period in 2024. There are chances, though, that with a significant increase in exports of agricultural products and machinery, the deficit data could improve in the fall.
Potential for Growth
The analysis also suggests that Romania could potentially produce blue ammonia, which could lead to a revival in production. This, combined with the growth in exports of various goods, provides hope for a positive trend in the trade balance in the near future.
Agricultural Fertilizers for Export
The evolution of Romanian exports will depend significantly on how authorities support the economy’s recovery. Romania has a great potential for relocating production activities with a focus on exports. Efforts to expand highways and the railway network, along with increasing investments in logistics parks, make Romania an attractive destination for investors.
Foreign direct investments in Romania totaled €3.230 billion in the first four months of this year, up by 34.14% compared to €2.408 billion in the same period in 2023. The trend remains positive despite challenges posed by inflation and an unstable fiscal framework, according to analysis.
According to a Frames study, Romania has all the chances to become a true regional hub in the field of agriculture. With the right policies and investments, the country can further develop its agricultural sector and become a key player in the international market for agricultural fertilizers.
Investments in Romania’s Industrial Parks to Exceed 10 Billion Euros
In the next few years, Romania is set to attract investments exceeding 10 billion euros in the logistics, production, and cross-border services sectors. The key investment focus will be on developing industrial park infrastructure, offering integrated facilities for warehouses, production spaces, services, transportation, and connectivity.
The most attractive investment areas are expected to be the Port of Constanta, Bucharest/Ilfov, and the Central region. With a stable EUR/RON exchange rate, a growing economy, and the security umbrella of NATO, Romania is poised to be a favorable destination for business investments. Cosmin Bucur states, “All these factors make Romania ‘open for business’, providing a safe and stable environment for investors.”
In a Europe where countries will compete to attract investments, Romania’s competitive operational costs, strategic location, and stable economic and political environment make it an attractive investment destination for businesses looking to expand their operations. With a strong focus on industrial park development, Romania is on track to become a key player in the European investment landscape.
Investing in Romania: Opportunities and Challenges
Romania, although lagging behind other countries in the region, has the potential to become an important destination for investors. However, more needs to be done to attract foreign capital.
Developing programs to stimulate production, with funding from the EU or the state budget, is likely to provide a significant boost to the economy, especially in the IT&C sector, in the context of the fourth industrial revolution, Industry 4.0, which Romania will also have to embrace.
Digitalization, robotization, and new technologies represent a field that needs to become strategic for Romania, with excellent potential for export. It requires a sustained effort from the business environment and the state towards an economic reconstruction based on solid foundations.
The Importance of Currency Hedging in Times of Crisis
In a volatile currency environment, businesses need to consider using hedging products and strategies to mitigate risks and protect their profit margins. According to experts, the current economic crisis has created significant pressure on businesses, making it essential for them to find alternatives to imports and remain competitive in exports.
Cosmin Bucur, Managing Director of Moneycorp Romania, emphasized the need for businesses to adopt hedging strategies to navigate through uncertain times and reduce the impact of exchange rate fluctuations on their bottom line. By implementing hedging techniques, companies can minimize the effects of currency volatility and increase predictability in their financial planning.
During times of crisis and uncertainty, such as the one we are currently facing, the fluctuation of exchange rates has a direct impact on trade margins. Therefore, companies must seek ways to stabilize their finances and ensure a steady cash flow. By utilizing hedging tools, businesses can protect themselves from unforeseen market changes and maintain a competitive edge in the global market.
Managing Currency Risk with Forward Contracts
Sebastian Bacioiu, Head of Dealing at Moneycorp Romania, emphasizes the importance of hedging tools in managing currency risk. According to him, one of the most basic and efficient hedging products is the forward contract. This involves fixing the exchange rate at which a company can buy or sell a currency at a future date.
The difference in interest rates between major currencies like the euro, dollar, pound sterling, and the Romanian leu makes forward contracts particularly attractive for exporters. This is because they can secure a more favorable exchange rate compared to the spot rate at the time of the transaction. By reducing the cost associated with currency transactions, forward contracts remain a pure hedging product for managing currency risk.
