EXCLUSIVE: June 2025 data reveals alarming trend - for every 100 new businesses, 107 are shutting down

BUCHAREST - Romania’s business landscape is showing dangerous signs of stress as new data reveals a troubling imbalance between company births and deaths. Despite a surface-level increase in registrations, the business ecosystem is actually contracting at an alarming rate.

The Numbers Don’t Lie: More Companies Dying Than Being Born

In June 2025, Romania recorded 11,765,. However,, meaning for every 100 new companies registering, 107 are exiting the market through suspensions, dissolutions,.

Business Deaths Accelerate at Alarming Pace

The data reveals a disturbing acceleration in business closures:

• Dissolutions surged 35.94% year-over-year to 4,391
• Suspensions jumped 22.88% to 1,665
• Total business exits reached 12,601 - a staggering number that dwarfs new registrations

“This isn’t just a statistical anomaly - it’s a systemic failure,” warned economic analyst Maria Popescu. “When businesses are dying faster than they’re being born, we’re looking at economic contraction,, which many experts interpret as a sign of desperation rather than entrepreneurial optimism.

“People are registering as PFAs because they can’t find traditional employment,” explained labor market specialist Andrei Ionescu. “This isn’t entrepreneurship - it’s survival. Meanwhile, traditional corporate structures are collapsing.”

Indeed,

• **SA registrations dropped 70.83
• **IF registrations crashed 88.52

Industry Sector Carnage Reveals Economic Weakness

The industry breakdown shows a deeply unbalanced economy with worrying trends:

Transport and storage saw a massive 41.18, but experts warn this could indicate oversaturation in a low-margin sector.

Meanwhile,

• **Financial intermediation dropped 13.41
• **Manufacturing fell 6.81

Most concerning is the complete disappearance of several major sectors from the registration data, including construction, real estate transactions, and healthcare - all of which showed 100% declines compared to June 2024.

Economic Storm Clouds Gather

The June data comes at a time when Romania faces multiple economic headwinds:

• Rising inflation eroding consumer purchasing power
• Tightening credit conditions making business financing more difficult
• Global economic uncertainty affecting export markets
• Persistent labor shortages in key sectors

“The seasonal patterns we’d normally expect in June - typically a strong month for business formation - are being overwhelmed by these negative trends,” noted Popescu. “This isn’t a temporary blip; it’s a structural shift.”

What’s Next for Romania’s Economy?

With the business churn rate exceeding 100% and net business growth negative, Romania’s economic foundation appears increasingly fragile. The explosion in individual entrepreneurship (PFA) suggests a workforce turning to precarious self-employment rather than stable corporate jobs.

As one business owner who recently closed his company told us: “The costs keep rising, the customers keep disappearing, and the paperwork never ends. It’s just not worth it anymore.”

Unless policymakers address the underlying causes of this business mortality crisis, Romania risks entering a dangerous cycle of economic contraction that could take years to reverse.

The data shows a business environment where survival is becoming increasingly difficult. With more companies closing than opening, Romania’s economic future hangs in the balance.