The report notes the country’s economic growth of 5.1% is not sustainable due to imbalances such as a widening of the fiscal deficit by 81% in the first six months, and the highest annual inflation rate in the EU, of 4.1%, a widening trade deficit and the depreciation of the Romanian leu
Moreover, the drop in insolvency numbers is offset by the number of disbanded companies, which grew 76%, payment delays are growing considerably, and large companies face a tough economic environment.
While insolvency numbers dropped 33% on the year in the first half, the companies that went insolvent had the lowest financial losses of the past decade. Nearly 75% of companies that went insolvent did not file financial statements (37%), did not record revenues (14%) or had a turnover below EUR100,000 in 2018 (27%).
The business environment remains polarized as the top 1,000 companies by turnover account for half the revenues of all 500,000 companies active in Romania.
The top three sectors with the largest number of companies going insolvent in the first half of 2019 were wholesale and distribution (480), constructions (438) and retail (387).