Lack of labor force and rise of costs could affect investments in Romania, Ernst&Young study shows

The survey notes Romania should improve the communications, transport and logistics infrastructure, together with the social climate. Some 216 executive managers took part in the survey and more than half believe Romania is an attractive destination for investments.

The country ranked first concerning labor force costs, personnel training, the level of taxes and the price of land.

Romania last year scored 58 percent and this year its score narrowed to 52 percent, according to Ernst & Young senior manager Fabrice Reynaud. Turkey ranked second, with 50 percent and this positive trend will help the country, Reynaud noted.

Bulgaria holds the third position of the league, with 40 percent and it is followed by Greece, with 31 percent. The less attractive country for investments is Cyprus (9 percent).

Regarding the number of foreign direct investments attracted, Romania ranks first with 149 projects. Serbia ranks second, with 63 projects and Bulgaria follows, with 60 projects. Turkey holds the fourth position, with 40 projects.

Romania became a European Union member on January 1, 2007 and in its first year of membership the FDI stood at 7 billion euros, covering 41.7 percent of the current account deficit.

FDI in Romania hiked 40 percent in the first two months of the year against the same period last year, to 1.22 billion euros and covered more than half the country’s current account deficit.

Romania’s forecast body (CNP) believes foreign direct investments in Romania could hike to 7.5 billion euros this year but cover only 41.2 percent of the current account gap gauged for this year.

Source: NewsIn