ALARMING DATA SHOWS NET BUSINESS LOSS FOR FIRST TIME IN YEARS

*June 2025 - Romania’s business ecosystem is showing dangerous signs of distress as new data reveals companies are exiting the market faster than new ones are being created,, a shocking development that signals potential economic contraction. While the country saw 11,765, a staggering 12,601 companies exited the market through suspensions, dissolutions,.

The business churn rate hit an alarming **107.11, meaning for every 100 new businesses created, hides a troubling reality. The growth is overwhelmingly driven by individual enterprises (PFA),,

• Suspensions increased **22.88
• Traditional corporate forms like SA (joint-stock companies) plummeted **70.83

Regional Disparities Widen

The capital continues to dominate, with Bucharest accounting for **2,682,,, raising concerns about oversaturation in a sector vulnerable to economic downturns.

Meanwhile, several critical sectors showed worrying declines:

• Agriculture, forestry,
• Manufacturing declined **6.81
• Hotels and restaurants fell **5.89

The Moving Average Mask

The 12-month moving average of 10,521 suggests stability, but this masks the underlying volatility and the recent net negative growth. The current month’s 11,765 registrations exceed the moving average, but this positive deviation is overwhelmed by the unprecedented exit rates.

What This Means for Romania’s Economy

The data paints a concerning picture: while individual entrepreneurship is booming, established businesses are struggling to survive. The shift toward PFA registrations suggests entrepreneurs are opting for lower-risk, indicates the business environment is deteriorating, with exits now outpacing new formations. This trend, if sustained, could lead to reduced economic dynamism, lower job creation, and potentially slower GDP growth.

Economic analysts warn that the current pattern of high churn and net business loss could signal the beginning of an economic downturn, with small and medium enterprises being particularly vulnerable to the challenging market conditions.

The June 2025 data serves as a critical warning that Romania’s business environment requires immediate attention and support to prevent further deterioration of the entrepreneurial ecosystem.