BUCHAREST, May 24 (NNN-Xinhua) — The number of company closures in Romania reached a record high in ten years in the first four months of this year, according to the latest data of the national office of trade registry.
As many as 55,942 companies were dissolved in the first four months across the eastern European country, up 94.3 percent over the same period of last year, showed the official statistics.
“It is the largest number of dissolved companies in the first four months from 2009. If the trend continues, 2019 could bring a record number of dissolved firms that could exceed the threshold of 100,000,” estimated experts of the local consulting agency Sierra Quadrant.
According to the agency, as far as dissolved companies are concerned by economic area, trade is the most with 17,349 companies, followed by agriculture, forestry and fishing with 10,838 companies, construction with 5,462, manufacturing with 4,457.
The highest increases were recorded in agriculture with 182 percent, mining with 137 percent, trade with 130 percent and construction with 125 percent.
The Romanian business environment is undergoing a “general cleanup” with positive effects in the medium and long term, Ovidiu Neacsu, associate coordinator of the Sierra Quadrant, was quoted as saying by the official Agerpres news agency.
“We still have too many poorly capitalized firms, without any horizon, without business plans, in which the entrepreneur’s instinct comes first,” he said.
According to Neacsu, the Romanian economy needs professionals, responsible business people to develop predictable businesses, grounded on the economic realities.
NNN-Xinhua
