Greek companies with operations in Romania are growing increasingly concerned about the country's economic trajectory, warning that soaring inflation, declining sales and stalled reforms are putting their investments under strain. The warning comes as Romania, long viewed as one of the fastest-growing economies in the European Union, now records one of the highest inflation rates in the bloc, according to Eurostat data.
Romania had in recent years been seen as a growth paradise within the EU, attracting investment from neighbouring countries and beyond. Greek businesses in particular have built a significant presence in the Romanian market, with construction firms regarding the country as their most important market. That relationship is now being tested by persistent price pressures and a reform agenda that has failed to advance.
For Greek construction companies, Romania's importance is hard to overstate. The sector has been one of the most active in the Romanian economy, and the country has posted the most significant advance in construction works across the EU, according to Eurostat figures. That growth has underpinned demand for Greek contractors and suppliers, but the combination of high inflation and delayed structural reforms is now weighing on sales and confidence.
The concerns extend beyond construction. Greek firms across several sectors have reported weaker sales as Romanian consumers and businesses adjust to higher prices. Inflation has eroded purchasing power and raised operating costs, squeezing margins for companies that had invested heavily on the assumption of continued rapid growth.
Stalled reforms add a further layer of uncertainty. Greek investors have long called for improvements in Romania's business environment, including clearer regulation and more predictable public policy. With reforms blocked, companies face a less stable planning horizon, making it harder to commit to new projects or expand existing operations.
There is also a risk of downgrade hanging over Romania's economic outlook, a prospect that would raise borrowing costs and further dampen investment sentiment. For Greek companies with substantial exposure to the Romanian market, such a development would compound the pressure already created by inflation and weak demand.
The situation illustrates how quickly a growth story can turn into a source of anxiety for foreign investors. Romania's rapid expansion had made it a magnet for regional capital, but the current mix of high inflation, slowing sales and policy inertia is forcing companies to reassess their plans. Greek businesses, given their deep ties to the Romanian market, are among the most exposed to any deterioration.
How Romanian authorities respond to the inflation challenge and whether they can unblock the reform agenda will be closely watched by Greek investors. For now, the message from the corporate sector is one of caution: the growth that once made Romania attractive is being undermined by price instability and a lack of policy progress, and companies are preparing for a more difficult period ahead.