GDP (Million $) – 403.395
GDP Per Capita ($) – 21.421
Growth Rate (%) – 1,6
Population – 18.832.000
Total Area (km²) – 238.391
Capital – Bucharest
Source: IMF, 2025
Located in the south-east of Europe and the second largest market in Central and Eastern Europe after Poland, Romania experienced a strong rural migration as it entered the industrialisation process.
With continued strong private consumption growth, real GDP growth is expected to average around 3% per annum over 2026-30, well above the projected EU average. Increasing capacity utilization, reduced uncertainty and the absorption of EU funds during the forecast period are expected to support investment growth, giving momentum to Romania’s construction and services sectors.
FOREIGN TRADE
Romania’s exports reached 100 billion USD in 2024. The country’s main export destinations were Germany, Italy, France, Hungary, and Bulgaria. Turkey ranked 8th among Romania’s export markets, with a share of 3.6%.
The leading export products of Romania in 2024 were, respectively: automobiles; parts and accessories for motor vehicles; insulated wires, cables, and other electric conductors; fiber optic cables consisting of individually sheathed fibers; electric control and distribution boards, panels, consoles, cabinets, and other bases, including numerical control equipment; and petroleum oils and oils obtained from bituminous minerals.
In 2024, the country’s imports totaled 136 billion USD. Romania’s main import partners were Germany, Italy, Hungary, Poland, and China. Turkey was the 6th largest import source for Romania, with a share of 5.6%.
The main imported products in 2024 included: parts and accessories for motor vehicles; medicaments prepared for therapeutic or prophylactic uses (in measured doses); crude petroleum (petroleum oils and oils obtained from bituminous minerals); automobiles; and petroleum oils and oils obtained from bituminous minerals.
INDUSTRY
Automotive production in Romania is primarily focused on passenger vehicles, with over 513,000 units produced in 2023. The main manufacturers are Ford and Dacia, which is part of the Renault Group. Dacia-Renault, located in Pitești, is Romania’s largest company. The Dacia-Renault plant and the Ford Craiova plant—which was transferred to Ford Otosan in 2022—are both significant suppliers to Romania-based
Turkish companies manufacturing automotive components. These two production facilities are also of great importance for Turkey’s automotive industry exports.
On the other hand, the automotive parts supplier industry in Romania is largely dominated by foreign companies operating local production facilities. Some of the key players in this sector include Continental, Michelin, Autoliv, Schaeffler, Johnson Controls, Delphi, Pirelli, Leoni, Draxlmaier, Yazaki, and Daimler.
Meanwhile, the operation of integrated textile factories in Romania has declined, and there has been a notable increase in demand for imported products in the ready-to-wear sector. In this context, Turkish exporters may find potential opportunities in ready-to-wear and home textile products.
Romania’s chemical/petrochemical industry, which developed during the planned economy period, was severely affected during the transition due to poor management, the lack of a coordinated development strategy, and increased foreign competition. Oltchim, once one of the largest chemical companies in Southeastern Europe, has gone bankrupt.
Additionally, the machinery manufacturing and iron-steel industries in Romania are also considered to have potential for Turkish exporters.
AUTOMOTIVE INDUSTRY
Romania's automobile production reached a historic high in 2024, with 560,102 vehicles manufactured—a 9.1% increase from 2023's 513,050 units. This growth was driven by key facilities: the Dacia plant in Mioveni and the Ford Otosan plant in Craiova. Notably, in December 2024 alone, 41,358 vehicles were produced, marking an 18.2% rise compared to December 2023.
The automotive sector remains a cornerstone of Romania's economy, contributing approximately 13% to the national GDP. It also stands as one of the country's most significant export industries, underscoring its importance in both domestic economic activity and international trade.
The Romanian car market experienced a 6% growth in 2024, with 151,105 units sold, signaling a recovery to pre-pandemic levels, though still below the 2019 peak. Dacia maintained its leading position with 44,470 units sold, capturing a 29.4% market share. Toyota and Skoda followed, with notable increases in sales. However, the electric vehicle (EV) segment faced challenges; sales declined by 35.2% after the removal of government subsidies, reducing EVs to 6% of total car sales.
Romania's automotive exports remained robust in 2024. The value of transport equipment and parts exported reached €2.15 billion in November 2024, highlighting the sector's strength in international markets.
Looking ahead, forecasts suggest continued growth in Romania's automotive production. Projections indicate a 3.9% increase in vehicle production volumes, reaching approximately 565,040 units in 2025. This anticipated growth is attributed to sustained demand, particularly for Dacia vehicles, across European markets.
IRON AND STEEL INDUSTRY
The Romanian iron and steel manufacturing sector recorded a market size of €2.6 billion in 2024, positioning it 16th among European countries. The industry comprised 171 businesses employing approximately 18,756 individuals. However, the sector experienced a compound annual decline of 9.1% from 2019 to 2024, reflecting the impact of rising energy costs, increased competition from non-EU producers, and fluctuating demand.
Liberty Galați, Romania's largest steel producer, reported a significant loss of RON 2.2 billion in 2023, nearly triple that of the previous year. The company attributed these losses to high energy costs and competitive pressures from cheaper imported steel. Similarly, ArcelorMittal Hunedoara announced a production reduction in December 2024 due to a lack of orders and economic difficulties, highlighting the sector's vulnerability to market fluctuations.
Recognizing the challenges faced by the steel industry, the Romanian government proposed increasing state aid to support decarbonization efforts. An initial budget of approximately €80 million was deemed insufficient, leading to discussions about raising the support to around €280 million. This aid, pending approval from the European Commission, is intended to be granted between 2025 and 2030 to help the industry transition to low-carbon steelmaking.
In a significant development, Turkish investment company Ussuri Capital announced plans to build a low-carbon flat-rolled steel plant in Romania. The project, with an estimated investment of €700 million to €800 million, aims to produce 1.2 million tonnes of steel annually. The first phase, involving a cold rolling mill and associated facilities, is expected to commence operations by 2027. The second phase includes the construction of an electric arc furnace and continuous casting module, scheduled for completion by 2030.
MACHINERY MANUFACTURING
The general-purpose machinery manufacturing industry in Romania achieved a revenue of €3.9 billion in 2024, ranking 21st in Europe. This sector employed approximately 46,000 individuals across 699 enterprises. Between 2019 and 2024, the industry experienced a compound annual growth rate (CAGR) of 4.8%, indicating steady expansion. The industry encompasses the production of industrial engines, gas turbines, and related equipment.
The "not elsewhere classified" (n.e.c.) machinery and equipment manufacturing segment reported a revenue of €5.5 billion in 2024, placing Romania 22nd in Europe for this category. This segment includes 2,361 businesses and has grown at a CAGR of 14.2% from 2019 to 2024. The sector covers a diverse range of machinery, including engines, turbines, fluid power equipment, pumps, and compressors.
This sub-sector, focusing on products like fluid-power cylinders, actuators, and welding equipment, recorded a revenue of €483.6 million in 2024. With 253 businesses employing approximately 7,492 individuals, the industry experienced a CAGR of 7.7% between 2019 and 2024.
Despite growth in specific machinery manufacturing sub-sectors, Romania's overall manufacturing output contracted by 1.1% year-on-year in 2024. This decline was influenced by subdued demand, particularly from key export markets like Germany, which significantly impacted new orders and production volumes.
CONSTRUCTION INDUSTRY
In 2024, Romania's construction industry experienced a notable contraction, with output declining by approximately 4.6% in real terms. This downturn was primarily attributed to high inflation, elevated interest rates, rising construction costs, and a decrease in residential building permits. The average construction cost index rose by 11.7% year-on-year in the early months of 2024, following an 8.2% increase in 2023. Additionally, the number of residential building permits issued fell by 5.7% compared to the previous year.
Despite these challenges, the industry demonstrated resilience, supported by significant public investments. The Romanian government allocated over €11 billion to EU-supported capital projects in the first half of 2024, representing about 3.3% of GDP. These investments focused on infrastructure development, including the construction of approximately 200 kilometers of express roads, expanding the national motorway network to around 1,200 kilometers. Furthermore, major projects such as the expansion of the Mihail Kogălniceanu Air Base near the Black Sea, with a projected cost of €2.5 billion, underscored the country's commitment to enhancing its strategic infrastructure.
Looking ahead, the construction industry is expected to recover at an average annual growth rate of 3.7% from 2025 to 2028. This anticipated growth will be driven by continued investments in infrastructure, renewable energy, and housing projects, supported by initiatives such as the National Recovery and Resilience Plan (NRRP) and REPowerEU grants.
FASTENER INDUSTRY
In 2024, Romania’s fastener industry has shown steady development, driven primarily by the country’s key industrial sectors such as automotive manufacturing, construction, and industrial machinery.
The presence of global automotive manufacturers like Dacia-Renault and Ford Otosan has significantly contributed to the demand for fasteners in Romania. These companies rely heavily on high-quality fastening solutions for vehicle assembly and component integration. Similarly, the construction industry has continued to support the growth of the fastener market due to ongoing infrastructure projects and real estate development. The industrial machinery sector also plays a major role, with manufacturers seeking durable and reliable fasteners for both production and maintenance needs.
Metal fasteners remain the dominant segment, covering threaded and non-threaded varieties, including those designed for aerospace use. Meanwhile, plastic fasteners are gaining popularity due to their resistance to corrosion and lightweight nature, especially in automotive and electronics. Aluminum alloy fasteners, known for their strength-to-weight ratio, are also in demand in sectors requiring high performance with reduced weight, such as aerospace and automotive.
The Romanian fastener market is moderately competitive, with both domestic and international firms participating. For example, KVT-Fastening S.R.L., a subsidiary of the Swiss Bossard Group, contributes to the market with its specialized products. As of 2023, the market’s Herfindahl-Hirschman Index (HHI) was 1732, indicating a relatively balanced competitive environment.
Looking ahead, Romania’s fastener industry is expected to grow further, supported by continued investments in infrastructure, expansion of local manufacturing, and rising demand for high-performance components. This growth will likely be shaped by technological advancements, global trade dynamics, and Romania’s integration into regional and international supply chains.
