The turnover of companies in Romania increased by 2.4% last year to EUR 281 billion.

The results include the balance sheets of 661,000 companies in Romania, according to the Trade Register data gathered in mid-July, reports local Ziarul Financiar.

Local companies’ net profits went up by 15% to EUR 20.7 billion in 2016, while losses dropped by 13% to EUR 8.9 billion. The balance, calculated as the difference between profit and loss, rose by 50% last year to almost EUR 11 billion.

In only two years, the profit margin of Romanian companies doubled, with only an 8% growth in sales. This was the result of higher consumption, stimulated by the VAT reduction from 24% to 20%, and salary increases in the public sector.

editor@romania-insider.com