December 2025 Analysis: Business Exits Outpace New Registrations, Signaling Market Consolidation

Romania’s business landscape ended 2025 with concerning indicators as December data reveals a significant imbalance between new company formations and business exits. The month recorded a net loss of 4,292 businesses, marking a contraction in the overall business ecosystem.

The Churn Rate Challenge

December 2025 saw 11,632 new business registrations , a substantial 45.87% increase compared to December 2024 . However, this growth was overshadowed by 15,924 business exits , resulting in a concerning churn rate of 136.9% .

The health ratio, which measures registrations against exits, stood at 0.73 , indicating that for every business that entered the market, approximately 1.37 businesses exited. This represents a deterioration from previous trends, with the health ratio declining by 0.19 points .

Business Exit Composition

The 15,924 business exits comprised three main categories:

• 5,573 dissolutions - representing permanent business closures
• 8,426 deregistrations - formal removal from the business register
• 1,925 suspensions - temporary operational halts

Year-over-year comparisons show dissolutions increased by 7.88% compared to December 2024 , while suspensions and deregistrations saw modest declines of 1.94% and 2.06% respectively.

Regional Disparities in Business Health

The business churn pattern varied significantly across counties, with some regions experiencing particularly high exit rates:

Argeș County recorded the highest churn rate at 183.28% , followed closely by Constanța (178.86%) and Sibiu (178.81%). In contrast, Ilfov County showed the most balanced ecosystem with a churn rate of 90.55% .

Bucharest, while accounting for the highest absolute number of exits (2,537), maintained a relatively moderate churn rate of 94.56% .

Entity Type Analysis: PFA Growth vs. Stability Concerns

The registration data reveals divergent trends among business entity types:

• PFA registrations surged by 108.93% year-over-year , reaching 3,650 new registrations
• SRL registrations increased by 27.4% , totaling 7,629
• Smaller entity types like Individual Enterprises (II) also showed strong growth of 67.76%

However, the rapid growth in PFA registrations raises questions about long-term stability, as individual enterprises typically face higher volatility than more structured business forms.

Industry Sector Performance

Several industries showed remarkable year-over-year growth in registrations:

• Manufacturing led with 226.28% growth
• Transport and storage grew by 55.78%
• Information and communications increased by 59.85%

These growth patterns suggest structural shifts in the Romanian economy toward manufacturing, logistics, and technology sectors.

Monthly Trend Analysis

December’s 11,632 registrations represented a 29.39% decline from November’s 15,051 registrations . This seasonal decline is typical for year-end months but appears more pronounced than usual.

The 12-month moving average stood at 12,790 registrations , slightly above December’s actual figure of 11,632, suggesting the month underperformed relative to the annual trend.

Ecosystem Health Assessment

The December 2025 data presents a mixed picture of Romania’s business ecosystem. While new registrations showed strong year-over-year growth, the significantly higher number of business exits indicates market consolidation and potential stress factors affecting existing businesses.

The negative net growth of 4,292 businesses represents a concerning trend, particularly when viewed against the backdrop of increasing dissolutions. The data suggests that while entrepreneurial activity remains robust, business sustainability faces challenges.

The regional disparities in churn rates point to uneven economic conditions across Romania, with some counties experiencing significantly higher business exit pressures than others. This geographic variation may reflect local economic conditions, regulatory environments, or sectoral concentrations.

As Romania’s business ecosystem enters 2026, the December 2025 data serves as a cautionary indicator that while new business formation remains healthy, attention must be paid to supporting existing businesses and improving their survival rates to ensure sustainable economic growth.