Romanian companies boast highest profitability in the region
Romanian companies recorded higher profitability than peers in Bulgaria, the Czech Republic, Hungary, and Poland across nine economic sectors, positioning Romania among the most attractive regional markets for investors in selected industries, Ziarul Financiar reported, citing a joint study by the Bucharest Academy of Economic Studies and the Deloitte Romania Foundation.
The study, based on 2022 data, showed that Romania was the clear regional leader in financial services and insurance, where companies achieved an average gross profit margin of about 58%. This compared with margins of around 11% in Poland, 16% in Hungary, and 37% in Bulgaria, while the Czech Republic also lagged significantly behind Romania in this segment.
According to the study, Romanian companies also outperformed regional peers in terms of gross profit margins in healthcare and private education, as well as in construction and transport. The hospitality sector was another area where profitability levels in Romania exceeded those recorded in neighbouring Central and Eastern European markets.
Researchers noted that the strong performance in these sectors reflects a combination of favourable cost structures, growing domestic demand, and comparatively lower competitive pressure in specific service-based industries. These factors have contributed to higher margins, particularly in sectors less exposed to international price competition.
However, the study also highlighted areas where Romania continues to trail regional peers. Profitability in the manufacture of machinery, furniture, textiles, and electrical equipment remains lower than in neighbouring countries. Sectors with high technological added value, including telecommunications and information technology, also showed weaker profit margins compared with regional competitors, according to the findings.
The report, titled “Opportunities for foreign investors in Romania,” was prepared to offer a detailed assessment of Romania’s investment climate amid shifting European and global economic conditions. The authors said the analysis aims to support foreign investors by identifying sectors with strong return potential, while also outlining structural challenges that continue to affect competitiveness in higher value-added industries.
iulian@romania-insider.com
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