Romania’s Economy: Number of Dissolved Companies Increased by 25% in Q1 2022

The number of dissolved enterprises grew by about 25% in the first months of 2022. This is terrible news for Romania’s economy.

According to data centralized by the National Office of the Trade Register (ONRC), the number of dissolved companies increased by 24.49% in the first two months of this year, to 5,155, compared to 4,141 in the same period in 2021.

Bucharest had the most dissolutions, with 934 firms (an increase of 18.98%), followed by Constanţa (261, + 38.10%), Timiş (241, + 19.9%), Ilfov (223, + 46.71%), and Cluj-Napoca (216, + 24.86%).

Ialomiţa counties, from the southern region od Romania, on the other hand, had the fewest company dissolutions, with 23 (+ 27.78 %), Giurgiu (15, + 50%), Călăraşi (33, + 37.50%), Covasna (34, + 41.67%), and Mehedinti (38, + 35.71%).

The wholesale and retail trade and the repair of motor vehicles and motorcycles are the fields of activity that registered the most company dissolutions in the first nine months of 2022, with 1,580 national dissolutions. Dissolutions in this industry climbed by 30.15% over the previous year.

Other industries with many firm dissolutions include construction and manufacturing, with 480 (+ 23.39%) and 440 (+ 16.71%), respectively.

It is pretty visible that we are going towards an economic decline in Romania. With all the price increases, inflation, investors losing interest in Romania, the fact that Romania imports more than it exports, and the difficulties that Romanian entrepreneurs face during this period, are alarming factors for the economic statistics of the next period.

The current left-right coalition has a tough job to accomplish to keep the economy floating, and the measures the government is taking now will only be felt by entrepreneurs and people in a couple of months. Meanwhile, inflation has already reached two digits. The population finds it very difficult to cope with the prices for food and colossal electricity and gas bills.