Romania registered a positive growth in the commercial exchange of goods and services. IT and business services led the boom in Romania’s commercial exports. The rise in commercial exchange was brought to light by a study performed in Romania and remitted last week.
According to the study authors, the prime factor driving the growth of the IT and business services exports in Romania is its geographical location and availability of an abundant trained workforce. This makes the Eastern European country the prime candidate for outsourcing demands from neighboring countries. Another factor that strengthens Romania’s position is the revenue tax exemption granted to qualified IT professionals. This makes Romania’s IT sector more competitive than other Eastern European countries. This is in spite of the fact that lower revenue taxation rates are common across Eastern Europe and have benefitted the steady economic growth of the whole region.
The business environment for SMEs has been on an upward curve in Eastern Europe in recent years. Countries such as Hungary, Poland, the Czech Republic, and Slovakia have seen notable growth in their respective SME sectors. Even though this growing market is challenged by toughening tax and regulatory frameworks, SMEs are expected to lead the economic growth of this region in the next few years.
Big businesses in Romania were the main drivers of growth in commercial exchanges, with the recovery of small business from the aftereffects of the 2008-09 recession taking longer than in other Eastern European countries.
New market entrants wanting to take advantage of the boom in Romania and other Eastern European countries would be aided by the generally stable economic conditions and lower revenue taxes than Western Europe.