Postcard From Bucharest

Some new business interests led me to visit Bucharest, Romania lately. Though I had no clear image of what Romania might look like, I was pleasantly surprised by the city’s vibe and dynamism.

The first thing that struck me was the cleanliness and the beautiful architecture. Because yes, a part of me still imagined Eastern Europe as a forest of concrete blocks. This trip reminded me once again how deeply shaped we are by what we learn when we’re young, from the press, at school, at home. These ideas stay with us until we confront them ourselves.

After all the countries I’ve visited recently, I didn’t expect to be surprised yet again by the discrepancy between my perception and what it actually is. But it is another good lesson.

Bucharest is a very dynamic, young, and arty city. There are museums everywhere, cultural events, trendy cafés and restaurants, and charming flower kiosks on every corner.

That being said, it was difficult for me to meet people and professionals there. Most of my messages and emails were left unanswered, even with introductions from friends. After speaking with a friend based there, it seems that Romania has a very closed community, where it takes a long time to be introduced and even longer to be accepted. From what I understood, it is also tough to do business (even as a native) without an extensive network and/or a powerful family.

Another funny anecdote: I quickly realized it was better not to mention I was French (a strategy I use more and more, actually). People often reacted negatively, citing unpleasant encounters with French tourists or bad experiences in Paris. Ironically, France has had a strong influence on Romania (notably in the arts and education system) back when France was one of the dominant cultural powers in Europe. Hence the replica of the Arc de Triomphe in Bucharest.

In fact, Romania has a complex history, and its culture reflects a wide range of influences. The country has deep Roman roots, visible in its Latin language (which I didn’t expect!), but it also absorbed strong Byzantine and Orthodox traditions through centuries of contact with the Eastern Roman and later Ottoman Empires. Central European influences came through Hungarian and Austrian rule, especially in Transylvania, shaping architecture, music, and administration. Slavic neighbours added linguistic and cultural layers, while more recent French influence helped shape Romania’s modern education, law, and elites. Together, these currents create a culture that is at once Latin, Eastern, Balkan, and Central European.

What are the main characteristics of the Romanian economy?

Demographics & geography

The country has 20 million inhabitants, a GDP of USD 382.77 billion, and unemployment around 5%. Bucharest alone represents 8-9% of the population. The second biggest city, Cluj-Napoca, has around 320,000 people.
Romania’s territory covers 238,397 km² which is almost the same size as the UK. Roughly one third of Romania’s territory is covered by forests.

Major sectors

Romania’s economy is driven mainly by services, which together account for a bit over 60% of GDP. The largest slices are:

• Wholesale and retail trade, transport and hospitality (22.7%)
• Public administration, education and health (19.1%)
• Professional and administrative services (14.3%)
• Information and communication (8%)
• Financial and insurance activities (7.6%)
• Arts, recreation and other services (3.6%)

Industry and construction still play a big role too, with industry excluding construction representing 19.1% of GDP and construction adding 8.8%. Agriculture, forestry and fishing account for 3.1%, modest in size, but still essential for many rural regions.

Purchasing Power

Romania is close to Poland in terms of purchasing power parity, surpassing neighbouring Moldova and Hungary.
Purchasing power increased 2.3× in the last decade.

Wealth

The financial wealth of Romanians reached USD 300 billion in 2024, growing 15.5% annually between 2018 and 2023. According to BCG’s 2024 Global Wealth Report, Romanian financial wealth is expected to grow by 8.6% per year, reaching USD 400 billion by 2028.
“In the next five years we expect strong growth in attractive segments for private banks, such as those with financial assets between USD 250k and 20 million. This population segment is expected to grow from approximately 60,000 to 85,000, offering attractive opportunities for banks providing customized solutions.” Krisztian Horvath, Partner & Associate Director, Wealth Management, BCG.
(Source: Romania Journal)

This aligns with what I noticed while walking the streets: there is wealth in Romania.

Stock Market

The Bucharest Stock Exchange (BVB) is the main securities market in Romania, the country’s central platform for stocks, bonds, and public companies. Among the largest companies listed on BVB are OMV Petrom (energy/oil & gas), Romgaz (natural gas), Banca Transilvania (banking), BRD Groupe Société Générale (banking), Hidroelectrica (utilities), and several others spanning utilities, finance, and energy sectors.

Relative to major Western European or global exchanges, BVB remains quite small and illiquid. As of 2025 it lists under 600 securities overall including stocks, bonds, funds and the total market capitalization is modest.

Liquidity is concentrated in a handful of large “blue-chip” firms: beyond them, many listed companies see low trading volume, which deter institutional investors and limits deep market dynamics like large-scale capital raising or high-frequency trading.

Another point on governance was raised by Carmen Daniela Micu and Adriana Lobdă, founders of Envisia, a school dedicated to training board members. Romania, like many other countries, still lacks clear and consistent governance standards. Boards of directors and chairpersons are often composed of friends or family members, which can undermine independence and weaken the protection of minority shareholders. Their project struck me as both unique and necessary, a much-needed step toward building a stronger governance culture. I am genuinely looking forward to seeing how Envisia evolves, not only within the Romanian business community but potentially as a model for other markets as well.

What are Romanians concerned about today?

I was surprised to see so many people in cafés and restaurants. Recent government announcements (notably tax increases) and high inflation do not seem at least for now to prevent people from going out and enjoying themselves.
Since it was harder than usual to meet people and gather insights on the ground, I turned to what the internet had to offer. Based on a recent BCG research:

• Spending has decreased in beverages and packaged snacks (see table below)
• Romanian consumers are among the most pessimistic in Europe:
  
  • 71% feel negative about the political situation
  • 64% feel negative about the economic outlook
• Most people expect prices to continue rising; ~30% expect their income to decrease
• Inflation, energy prices, and geopolitical tensions are the top concerns
• Inflation peaked at 13.8% in 2022, dropped to 5.7% in 2024

The current government is implementing reforms that will impact future generations, including a tax increase. It is significant for a country that long benefited from one of the lowest tax levels in the EU.

I left fascinated by the city, the culture, and the people. I hope to discover more of this country, which seems full of resources, both material and immaterial.