President lays out Romania's strengths, weaknesses to Swedish businesspeople, prods them to invest

Romania's dynamic growth rate, the highest in Europe, as well as the 8 billion euros estimated to be pumped in from foreign direct investments in 2008, are two of the country's trumps which should persuade Swedish investors to spend money in Romania, President Traian Basescu said.

Romania is living its seventh consecutive year of economic growth.

FDI stood at 9.1 billion euros in 2006 and at 7.1 billion euros in 2007, Basescu said, adding that "the figures talk for themselves." Other advantages Basescu mentioned during his official visit in Sweden were the low public foreign debt and a predictable tax system.

On the minus side, Romania faces difficulties in reaching its inflation target, Basescu admitted. Inflation over the past four months was higher than expected (5.5 percent at the end of 2007 against a 4.8 percent forecast). Moreover, the country revised its inflation target for 2008 from 4.5 percent to 5.5 percent, blaming turmoil inside the international business environment. For 2009 the rate was set for 3.8 percent.

Besides the soaring inflation, Swedish businessmen are unlikely to run into big "surprises" if investing in Romania, Basescu said. Romania prioritizes the development of infrastructure, education, rural areas and environment protection.

Basescu admitted Romania has infrastructure issues but pledged to build pan-European roads and highways. As far as the environment policies are concerned, Romania aims to reduce CO2 emissions and have a better waste product management. Another aching point is the agriculture industry which needs a boost in the countryside.

NewsIn