Monday, April 3, 2017

Many reasons for optimism in Romania

Emerging Europe:

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I found seven reasons for optimism in Romania, an economic growth champion in European Union:

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Labour costs are still competitive in Romania, despite the highest increase in the EU (up by 12.33 year-on-year). In my opinion, the competitive figures (wages are 20 per cent of the EU average) and the good quality and size of the IT workforce (more than 60.000 specialists) will be drivers of Romania’s strength in the next three years.

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The expected upgrade for Romania from a frontier market to an emerging market will open the country to many large investors and will also improve the local financial ecosystem.

Romania is attractive, of course, on fiscal side, with one of Europe’s friendliest tax regimes: corporate income and personal income tax are at 16 per cent, one of the lowest in Europe. The new 1 per cent tax rate that is applicable for micro-enterprises with at least one employee became a magnet for small and medium foreign investors. 

Places that are friendly to capital will get more capital. With more capital comes more opportunity and growth along with more and better jobs and wealth.

People ask me why I put these articles up about these obscure places. The reason is, this is where the growth is coming from. The US is growing at 1% and these frontier and emerging markets are growing at 4-10%.

Where do you think the upside exists?

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