EXCLUSIVE: Romania’s business registration data for December 2025 reveals a disturbing economic paradox that experts warn could signal deeper structural problems in the nation’s economy. While new company registrations surged by a staggering 45.87% compared to December 2024 , the alarming reality is that business exits continue to outpace new entries at an unsustainable rate.

The Illusion of Growth

December 2025 saw 11,632 new business registrations , a dramatic increase from 7,974 in December 2024. However, this apparent boom masks a critical vulnerability: 15,924 businesses exited the market through suspensions, dissolutions, and deregistrations , creating a net loss of 4,292 businesses for the month .

The churn rate—the ratio of business exits to new registrations—stands at a shocking 136.9% , meaning for every 100 new businesses that enter the market, 137 are leaving. This represents a deterioration from the previous year’s already concerning trend.

PFA Explosion: A Desperate Survival Strategy

The most dramatic growth came from Individual Enterprises (PFA), which exploded by 108.93% year-over-year , with 3,650 new registrations compared to just 1,747 in December 2024. While this might appear positive, economic analysts warn this surge represents a troubling shift toward precarious, low-capital business models as traditional employment opportunities dry up.

Limited Liability Companies (SRL), the backbone of Romania’s formal economy, grew by a more modest 27.4% , suggesting that while entrepreneurship is increasing, it’s increasingly concentrated in less stable business forms.

Industry Concentration: Manufacturing Bubble or Bust?

The manufacturing sector showed the most explosive growth, skyrocketing by 226.28% year-over-year , with 1,018 new registrations compared to just 312 in December 2024. However, experts caution this could represent a speculative bubble rather than sustainable industrial development.

Transport and storage grew by 55.78% , while information and communications surged by 59.85% . These growth patterns suggest Romania’s economy is becoming increasingly dependent on logistics and digital services, potentially at the expense of more traditional, labor-intensive sectors.

The Business Death Spiral Continues

Despite the registration boom, the business exit crisis shows no signs of abating. Business dissolutions—the permanent closure of companies—increased by 7.88% year-over-year , reaching 5,573 in December 2025.

The health ratio—registrations divided by total exits—stands at a precarious 0.73 , indicating that business deaths continue to outnumber births by a significant margin. This ratio has deteriorated by 0.19 points from previous trends , suggesting accelerating structural problems.

Regional Disparities Widen

Bucharest continues to dominate the business landscape with 2,683 registrations , representing 23% of all new businesses. However, the most dramatic growth occurred in Iasi County, which saw a 95.06% increase , suggesting a potential shift away from traditional economic centers.

This regional concentration creates vulnerability, as economic shocks in Bucharest could disproportionately impact the entire national business ecosystem.

Seasonal Patterns Mask Deeper Problems

December typically sees increased business registrations as entrepreneurs rush to establish companies before year-end for tax planning purposes. However, the 12-month moving average of 12,790 registrations suggests that December 2025’s figures, while impressive on the surface, actually fall below the annual trend.

The current month’s registrations of 11,632 are significantly below the moving average , indicating that what appears to be explosive growth may actually represent a cooling trend when viewed in proper context.

Economic Factors: A Perfect Storm

Several factors likely contribute to this paradoxical situation:

1. Economic Uncertainty: Businesses are being created as survival strategies rather than growth opportunities
2. Labor Market Pressures: The PFA explosion suggests declining traditional employment options
3. Regulatory Environment: Complex business regulations may be driving both entry (for tax advantages) and exit (due to compliance burdens)
4. Market Saturation: Rapid entry in certain sectors could lead to destructive competition and subsequent exits

The Bottom Line: Unsustainable Growth

While the headline numbers suggest a business registration boom, the underlying data reveals a deeply concerning pattern. The Romanian business ecosystem is experiencing what economists call “high-churn growth”—rapid entry followed by even more rapid exit. This pattern is characteristic of economies in transition or distress, where businesses are created out of necessity rather than opportunity.

The manufacturing sector’s explosive growth, while impressive on paper, raises questions about sustainability and quality. Are these genuine industrial enterprises or merely shell companies created for specific projects or tax purposes?

As we enter 2026, the critical question remains: Can Romania’s business ecosystem transition from this high-churn pattern to sustainable, quality growth? The current data suggests not—and the consequences could be severe for economic stability and employment in the coming year.

The December 2025 business registration data reveals an economy creating businesses at a frantic pace while simultaneously losing them even faster—a pattern that cannot continue indefinitely without serious economic consequences.