In the last five years, approximately 50 new laws have been adopted, which have increased the level of unpredictability of the economic environment and increased the risk perceived by investors, according to PricewaterhouseCoopers (PwC) study for the Romanian Banking Association, consulted by energynomics.ro.
„In the past five years, the unpredictability of the banking legislative framework has accelerated by recurring growth, from year to year, of the number of laws and regulations adopted (about 50 new laws in 2014-2018),” the document states.
From the analysis of the GDP structure, it is noted that over the last 10 years, the role of investments in economic growth has been decreasing by 10 percentage points, Romania having one of the lowest investment activities in the EU (only 68% of the companies invested in 2018, compared with 87% at EU level).
„Low productivity in Romania (59% of the EU average), low degree of automation (20% of the average and low spending on research and development (25% of the EU average) highlights the acute need for investment in Romania,” the study said.
Terms in which the profitability of banks has been in the last 10 years below that of Central and Eastern European countries. But, given a poorly-developed capital market, bank lending remains the main viable alternative to investing, the study argues.
