ABSL Romania: The removal of tax incentives and the lack of a national strategy fmay affect Romania’s long-term attractiveness

• Romania is a key hub for the business services industry due to its well-trained workforce, high rate of technology adoption, and competitive costs.
• The sector registers one of the highest growth rates in the region.

The latest ABSL Romania report, conducted in collaboration with Deloitte, highlights the current advantages of the business services industry and why its development should be a national priority.
Over the past decade, the business services sector has been one of the pillars of Romania’s economy. In 2023, this sector’s contribution to GDP was the highest in the region, reaching 10.5% when including IT services. For the past 10 years, it has consistently held the largest share in the region. Furthermore, the growth rate of Romania’s business services sector has continuously outpaced overall economic growth, emphasizing its crucial role in the national economy.
“In the long term, the business services sector  has seen a higher growth in the number of employees compared to the dynamics of the economy as a whole. Over the last 10 years, the industry has maintained an average annual growth rate of 14% — the highest in the region. These achievements have significantly strengthened the national economy, created well-paid jobs, and contributed to a higher standard of living.

However, there is a strong correlation between this sustained growth and the tax incentives the sector benefited from until the end of 2023. After this period, Romania became the only country in the region without specific governmental measures to stimulate this sector, and the negative effects are already visible, including a decline in IT employment and potential investors,” said Catalin Iorgulescu, ABSL Vice President.


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