Romania's IT industry rose by 12% y/y in 2023, while employment dropped by 5%

The aggregated turnover of Romania's IT industry lost momentum from a 33% y/y growth rate in 2022 to only +12% y/y in 2023, when it reached EUR 15.6 billion, according to a study carried out by a research group from the Academy of Economic Studies in Bucharest at the request of the Employers' Association of the IT Industry Software and Services (ANIS).

The industry's employment dropped by 5% to some 190,000, according to the study quoted by Startupcafe.ro.

The association defended the industry's preferential regime, arguing that a complete elimination of the allowances for IT professionals, as planned by the government for July 2025 under the fiscal consolidation plan, will have a strong negative impact. Exemption from tax on the salary income of employees in the IT sector is a tax facility introduced in 2001.

Adding the telecom industry, the IT&C sector had a cumulative turnover of EUR 22 billion in 2023.

The IT&C industry, however, had a higher total contribution to GDP of up to EUR 45.3 billion in 2023 if the multiplier effect of the economy is taken into account.

Thus, the total impact of the industry on GDP in 2023 was 14.16%, argued the authors of the study. Also, more than 880,000 jobs were created directly and indirectly by the IT&C industry in 2023, according to the same source.

(Photo source: Sarinya Pinngan/Dreamstime.com)