👉Romania growing and becoming The Silicon Valley of Eastern Europe , despite The Corruption

Romania is the most populous and largest countries in the Balkans. It is in the EU, and when it comes to the Human Development Index, it ranks 52nd in the world. Italy has been the main investor country in Romania for more than ten years in the number of registered companies. Romania made an impressive development ,especially during the past 15 years . Romania is a very fast developing mixed economy with high income. This is one of the leading nations in central and Eastern Europe. Romania’s economy is based on both agriculture and industries. Romania is also rich in natural resources and very close to being energy independent. Romania has the largest gold deposit in continental Europe. There is a positive outlook for the Romanian Economy for the next decade. The country growth with an average of 4 percent in the last ten years and is expected to continue with a rhythm superior to the EU average. The main potential for growth is the energy sector, IT, agriculture, construction industry, and tourism. But there are some vulnerabilities.As Romania is dependent on foreign investments which could stop if a global economic downturn hit Western Europe. There is a deficit of workforce as the emigration to richer countries in the West drain the local human resources pool. It desperately need investment to improve public infrastructure and have a trade deficit and a fiscal policy that put pressure on local currency. All these vulnerabilities could have a strong negative impact on economic growth. Welcome to The Atlantis Report. Romania’s relative wealth is still very new, and it takes time until Romania can invest this wealth into all fields of life. Build the same amount of high-speed motorways as Hungary has for example. Raise pensions to the same purchase-power level, renew all buildings and demolish the hopeless ones, invest in health-care, empower disabled people and providing rights to minorities. The wealth in Romania is concentrated around the top 5 cities. Bucharest, the capital city and the surrounding metropolitan area, already surpasses metropolitan areas like Madrid, Berlin or Budapest, with a GDP per capita of 131% of the European average. The EU’s average GDP is around $30k per capita (nominal). Romania has around $10k. So as you can see, there is a lot of room for improvement and companies like highly qualified, fairly cheap labor. And it could increase much faster if there would be political stability in the country, meaning very clear and stable economic laws and less bureaucracy. Stricter and enforced anti-corruption laws would also help. Romania has great economic potential provided somebody can remove the vast swathes of corruption, cut the government incompetence and stifling bureaucracy to at least vaguely manageable levels and deliver a legal/regulatory system that adheres to something within a standard deviation of western standards. Without the above core basics moving Romania away from the de facto feudal society it currently is, the chasm between its potential and likely economic outcome is considerable. Alas. Romania is a well-located country in the epicenter of huge potential, with commodity resources aplenty, a highly educated workforce, and a confluence of some of the best IT and foreign language skills amongst the workforce within all of Eastern Europe. I am hugely optimistic that the country has a sensational future...once it manages to diminish the factors holding it back... So let's see what industries drive the Romanian economy? Software development. Romania has the most programmers per capita from all the European countries. In the last few years, big companies moved their software development teams to Bucharest, Cluj, and Timisoara. They were attracted here because of the large number of software developers, good flight connections to Europe, and the fact that somewhere around 95% of the people in the industry know English. Also, a big incentive is the fact that programmers in Romania don't have to pay tax on revenue. All of these factors combined resulted in a boom in this industry so big that now it's struggling in finding the workforce. There are around two vacant jobs for every programmer in Bucharest. Because of that, the salaries went through the roof, and a lot of companies started using subcontracted programmers from outsourcing firms, or they try to employ people through one of the many IT recruiting companies. The future of the Romanian economy will tap into the huge potential of a few key sectors. #1. Information Technology: The IT sector is growing fast. Romania has the following advantages: European Union and NATO. ​Political and financial stability and great tax incentives (software developers pay no income tax). Since 2015 the tax-exempt was extended to all EU IT experts. That measure alone is expected to bring to Romania an inflow of tech talent from highly taxed EU countries. A general tax is flat 16%. The VAT is at 20%, scheduled to drop to 19% next year. Emerges as Silicon Valley of Eastern Europe. There's a Silicon City (500 Acres) being built right now . The situation favors outsourcing, and there's a normal tendency towards product development. This mega project is part of the EU Research and Innovation report as a strategic EU project (one of only 3 in Romania, along with the project for the world's most powerful laser). Affordable cost of living, which means that employees need lower salaries to maintain the same standard of living. Medium to the large-sized country . Romania is 7th largest in EU28 with the aim of becoming the tech startup capital of Europe. Excellent internet infrastructure, top 5 worldwide, and best in Europe. ​ Romania has more Information technology and Math Olympiad medals than any other European nation and currently ranks 3rd globally after Russia and China. Romanian mathematics team is among the best in the world (top 10) and first in Europe. Technical education includes 5 top polytechnic universities, 59 domain-specific universities, and 174 private colleges. Romanian universities have been Top 3 in the IEEE Design Competition every year since 2001. The highest density of skilled talent in the world. The number of engineers per capita is greater than the US, India, China, or Russia. Top 10 globally in the number of certified I.T. specialists. I.T. Specialists in Romania speak those Top 5 languages: English: 98.38%. French: 27.45%. Spanish: 12.95%. German: 9.92%. Italian: 6.90%. More relevant data on the IT Sector in Romania. #2. Renewable energy: Romania has the highest wind power potential in South-Eastern Europe. Solar power in Romania. #3. Automotive: Romanian automotive sector might also represent a level of interest. #4. Travel, Tourism, and Bio Agriculture. Romania's untapped potential in this area is huge, and I mean huge. Romania is the 8th agricultural power of Europe. State Secretary: Organic farming is growing in Romania. Romania has over 12,000 square miles of a mountain range .And national parks with 12 peaks over 2,500 meters; unique in the world 2,200 square miles Danube Delta; over 245 km of seaside coast; and rich farm/agricultural land. Romania also has more than one-third of Europe's mineral and thermal springs and most of the EU's wildlife. The endless wilderness and cultural traditions (almost extinct in the rest of the EU) will start to attract westerners moving away from highly dense, polluted, and expensive areas. I predict that Romanian rural slow healthy living will become trendy soon, if not already, not only for EU foreigners but Romanian youngsters too. And the biggest promoter is none other than Britain's Prince Charles. According to data published by the Romanian National Institute of Statistics (INS), the Romanian economy continues to grow also during 2019, with an increase in GDP, which in the first half of the year was 4.7% compared to the same period of the previous year. The growth projections prepared by the Romanian National Strategy and Forecasting Commission foresee a 4.1% increase in GDP in 2020, in line with the estimates of the European Commission, which foresees growth rates equal to 3.7% in 2020. The annual inflation rate rose to 3.8% in June 2019, compared to June 2018. Rising food prices contributed to the rise in inflation 5%, services 4.2% and non-food products 2.8%. The average consumer price index in the last 12 months (July 2018- June 2019) compared to the previous 12 months (July 2017- June 2018) rose 4.1%. The unemployment rate in Romania in June 2019 was 4.0% (an average value which, however, reflects diversified regional situations, with the more developed areas where virtually full employment is recorded), further decreasing compared to 4.2 % of June 2018. As regards to the average net wage, in June 2019, it amounted to 3,142 lei (668 euros), an increase of 15.5% compared to June 2018. As of June 30, 2019, according to data from the Romanian Ministry of Finance, the public debt reached 407 billion lei (86 billion Euros), equal to 39.5% of GDP. The public deficit stood at 19.96 billion lei, equal to 1.94% of GDP, with an increase of almost 5 billion lei compared to the same period of 2018. As regards to the forecasts on the trend of the deficit, the European Commission estimates that the deficit-to-GDP ratio may reach 3.6% in the current year and reach 4.8% in 2020, mainly due to the increase in public wages. The new GNP government made the budget adjustment in November, based on an even higher forecast of the deficit trend of 4.4%. The average currency exchange rate EUR-RON in the first six months of 2019 was 4.7414, recording depreciation of 1.88% compared to the corresponding period in 2018, in which it was equal to 4.6537. As regards to Romania's foreign trade data, the trade deficit increased by 1.3 billion euros in the first six months of the year compared to the same period of 2018 (+ 22%), reaching a value of 7.69 billion EUR. The main products exported from Romania are electrical machinery and equipment (29.5% of total exports), means of transport (18.9%), chemicals and plastics (9.2%), metallurgical products ( 9.2%), and agri-food products (8.7%). The export structure is similar, represented by machinery and electrical equipment (26.8% of the total import), chemicals and plastics (17.1%), means of transport (10.8%), metallurgical products (10.3%) and agri-food products (9.7%). Romania's main export markets are Germany (23.1% share of total exports), Italy (11.6%), France (7.2%), Hungary (4.7%), United Kingdom ( 3.8%), Poland (3.5%). The main import markets are Germany (20.2% of the total Romanian imports), Italy (9.3%), Hungary (7.1%), Poland (5.8%), China (5.3% ), France (5.1%). Italy remains Romania's second-largest trading partner after Germany. Romania is hopefully finally waking up to the call of dealing with the corruption, and once the Rule of Law is better established, I think other remnant problems of Totalitarian times will be solved. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.











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