Company Profits in Romania Highest in Central and East Europe: 2000-2005

Roland Berger Strategy Consultants: Companies in Romania, most lucrative in Central and Eastern Europe
ING News / Oct 16 2006

Revenues of lucrative companies operating in Romania grew on average by 21.9 percent over 2000-2005, which is the highest level of Central and Eastern Europe, whereas the number of employees downsized by 6 percent, which means an important growth of the labour productivity, daily Cotidianul reports on October 6 citing information from a survey conducted by Roland Berger Strategy Consultants. The survey’s authors branded the economic results as `’exceptional” as an outcome of their comparison to the performances of other countries. Daily Cotidianul emphasizes that the revenues of Hungarian companies in the same period grew by 9.9 percent, by 7.4 percent for the Czech companies, whereas the growth pace of the Polish companies’ revenues was of 7.7 percent. The highest annual growth paces in Romania over 2000-2005 were registered in the banking sector (29.7 percent), in insurance field and IT, by 22.5 percent each; the pharmaceutical industry and constructions reported a 19.1 percent growth and 15.2 percent respectively. The Romanian companies’ good results are explained by the consultants of Roland Berger through the sustained rhythm of foreign investments in the respective fields, generated by the privatization of state-owned big-sized enterprises particularly in the oil sector. Another explanation is the relocation in Romania of numerous production facilities of western companies. Managing director at the Roland Berger office in Bucharest, Codrut Pascu, deems that due to develop significantly in the future are the financial services, tourism and consulting services, whereas at the opposite pole will be the petrochemical production and industry. The survey carried out by Roland Berger Strategy Consultants analyzed the performances and the growth pace of over 1,7000 companies worldwide, of which 480 are operating in Central and Eastern Europe.