Romania fell to 61st place out of 70 economies in the 2026 IMD World Competitiveness Ranking
Romania dropped 12 places to 61st out of 70 economies in the 2026 IMD World Competitiveness Ranking, according to the latest World Competitiveness Yearbook published by the IMD World Competitiveness Center, with the findings cited by Romania's Technology Information Centre (CIT-IRECSON).
'Romania records significant declines across all four competitiveness factors, falling six places in Economic Performance to 62nd, 17 places in Government Efficiency to 61st, 19 places in Business Efficiency to 69th and 10 places in Infrastructure to 55th. Economic Performance declined as a result of the overall performance of the economy, reflected in macroeconomic indicators showing that the economic engine is facing operational difficulties. Real GDP growth (0.7% in 2025, 57th), the current account balance (-7.9% in 2025, 67th), inflation (7.3% in 2025, 63rd) and youth unemployment (36% of young people willing to work and actively seeking a job are unable to find one, ranking 64th) are among the main factors behind the deterioration in economic performance,' reads a CIT-IRECSON press release.
According to the report, 'Government Efficiency is affected by the budget deficit, which reached 7.6% of GDP in 2025 (66th), income taxes that discourage people from working or seeking promotion (67th), the high risk of political instability (65th), the cost of capital, which does not encourage business development (65th), weak social cohesion (63rd) and the shadow economy, which hampers economic development (62nd). These are among the main factors behind the decline in government efficiency.
Regarding Business Efficiency, Romania's average labour productivity across the economy stood at USD 51 per hour worked in 2026, ranking 41st overall. Productivity reached USD 14 per hour in agriculture (60th), USD 53 in industry (43rd) and USD 143 in the services sector (16th). The labour force declined by 1.3% in 2025 compared with 2024 (63rd), while apprenticeship schemes remain underdeveloped (70th), corporate social responsibility is weak (69th), banking services provide insufficient support for businesses (68th) and entrepreneurship remains relatively underdeveloped (68th).
The Infrastructure pillar also recorded significant declines, particularly in basic infrastructure (63rd) and technological infrastructure (51st). Romania also slipped in health and environmental infrastructure (51st) and education (55th), the report said.
'The results of the 2026 World Competitiveness Yearbook highlight the urgent need for Romanian society to take measures that improve the country's economic situation so that Romania can address at least three major current challenges: inflationary pressures, the budget deficit and the current account balance. We also draw attention to the fact that the business community points to the risks associated with political instability and expresses concern about the possible failure of its own businesses,' the institute said.
Globally, Singapore topped the 2026 competitiveness ranking, overtaking Switzerland, which led the 2025 edition but fell to third after also being surpassed by Hong Kong SAR. Taiwan climbed two places to fourth, while the United Arab Emirates retained fifth place.
The broader trend was also negative across Europe. Norway, Finland, Iceland, Germany, Austria, Belgium, the Czech Republic, Lithuania, France, Portugal, Italy, Slovenia, Hungary and Romania all slipped in the rankings. By contrast, Luxembourg, the United Kingdom, Estonia, Latvia and Poland improved their positions.
Several Asian and Middle Eastern economies also advanced, including China, Saudi Arabia, Malaysia, South Korea, Thailand, Japan, Kuwait and Oman.
The World Competitiveness Yearbook assesses 70 economies using 262 indicators, drawing on official statistics and an annual survey of business executives.
The IMD assesses competitiveness across four broad pillars: Economic Performance, Business Efficiency, Government Efficiency and Infrastructure.
CIT-IRECSON is the Romanian partner of the IMD World Competitiveness Center in compiling the World Competitiveness Yearbook. AGERPRES (RO - writing by: Mariana Nica; EN - writing by: Simona Iacob)
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