AmCham: Romania’s economy can go up above EU level, if it focuses on high added value products & services

Romania’s economy can go up by 2% above the average growth in the EU if the country significantly increases foreign investments, the number of jobs and labor productivity, according to a recent report from the American Chamber of Commerce (AmCham). Romania is overly dependent on activities with a low added value – about 70% of the jobs in industry are in sectors which generate low added value. Over half of the available jobs are in retail, similarly to other member states, but these have a lower contribution to the Gross Domestic Product, as labor productivity is also lower than in other member states, according to AmCham. This is triggered by the low education level: only 14% university graduates, 41% highschool graduates, and 45% of the population has finished primary school. Romania should switch to activities which bring a higher added value, develop its capital market, as well as stimulate an increasing birthrate, while also selectively attracting immigrants, AmCham recommends. The full report from AmCham is here (in pdf, in Romanian). editor@romania-insider.com