Analysis: Start of 2026 brings real shockwave for Romania's business environment

  The start of 2026 brought a "real shockwave" for Romania's business environment, as the number of insolvencies rose by 36.7% in January compared with the same period last year, while company dissolutions increased by 47.2%, according to a Sierra Quadrant analysis based on National Trade Register Office data."The beginning of 2026 brought a real shockwave for Romania's business sector. The statistical data outline a clear picture of an economy under enormous pressure, with entrepreneurs giving way one by one under the weight of mounting challenges. The figures for the first month of the year show an extremely harsh reality for the entrepreneurial environment," the analysis sent on Friday states.Between 1 January and 31 January 2026, a total of 5,403 companies were dissolved nationwide, up 47.22% compared with January 2025, when 3,670 dissolutions were recorded. Temporary suspensions of activity also rose, with 2,046 voluntary suspensions registered in the first month of 2026, marking a worrying increase of 19.93% compared with January last year."The capital predictably remains the epicentre of this economic earthquake. In Bucharest alone, 998 companies were dissolved, up 50.30% on the beginning of last year. At the same time, 255 Bucharest-based companies temporarily closed and suspended their activity, 34.21% more than in January 2025," the analysis shows.Major regional growth hubs are also feeling the shock. Constanta County recorded 291 company dissolutions, an alarming increase of 75.30%. Cluj County, often seen as Transylvania's main economic engine, saw 273 companies dissolved, up 52.51%."There are also counties where the phenomenon has reached catastrophic proportions. Galati County reports the steepest rise in dissolutions nationwide, with an explosive 138.81% increase to 160 closed companies. Moreover, activity suspensions in Galati soared by 166.67%," the analysis indicates.According to analysts, the bleakest indicator of the economy's condition is insolvency, effectively placing businesses that can no longer meet their debts into "intensive care".Sierra Quadrant data show that 529 professionals entered insolvency nationwide in January 2026, a sharp 36.69% increase compared with 387 economic operators in the same period last year.In Bucharest, 108 companies entered insolvency, the figure remaining relatively stable with a slight increase of 0.93%. However, provincial economies are sending strong warning signals.In Constanta County, insolvencies surged by 433.33%, jumping from just three firms in January 2025 to 16 in 2026. Galati again ranks high among the negative statistics, with insolvencies up 162.50%. Cluj County recorded 38 new insolvency cases, an increase of 22.58%.A breakdown by sector highlights major structural vulnerabilities. Trade remains the sector with "the most victims" in absolute terms. "Based on the former CAEN 2008 classification, wholesale and retail trade reported 1,021 dissolutions, up 6.80%. However, under the new CAEN 2025 classification, the same commercial sector shows a spectacular 478.33% increase in dissolutions, affecting 347 companies," the analysis states.The real shock, however, comes from the IT and telecommunications industry, once considered the undisputed jewel of Romania's economy.Under the CAEN 2025 classification, dissolutions in the sector defined as "Telecommunications; programming and consultancy activities" rose by an extraordinary 1,040%, from 10 firms closed at the beginning of last year to 114 now dissolved. Temporary suspensions in the IT sector also climbed sharply by 416.67%, totalling 93 frozen businesses under CAEN 2025.The construction sector, vital for national infrastructure development, also shows signs of exhaustion. In January 2026, 393 construction companies were dissolved under CAEN 2008, up 2.34%. In addition, 79 construction firms under the same classification officially entered insolvency, an increase of 5.33% compared with the first month of the previous year."At the end of the entrepreneurial road are deregistrations, representing the final stage when companies disappear permanently from state records. At national level, the overall situation appears to be stagnating for now. A total of 6,312 deregistrations were recorded in January 2026, marking a slight decrease of 0.24% compared with January 2025," the experts note. However, county-level dynamics remain highly volatile. Bucharest reported a 9.84% rise in deregistrations, reaching 1,172 companies completely removed from the register, while Galati County recorded a 166.23% surge."These figures clearly confirm that the national economy is going through a period of severe turbulence, in which small investors and local businesses are the first to pay the heavy price of instability," said Ovidiu Neacsu, coordinating partner at Sierra Quadrant.The analysis also shows that a significant decline in sales volumes, amid inflationary effects, is affecting almost all economic sectors. The worsening financial blockage is another factor that has pushed many companies into difficulty, the consultants add."In essence, the economy continues to feel the full impact of inflation, rising operating costs and a deepening disintermediation trend. In many sectors, business has become rather arid terrain, where only those able to adjust their financial exposure, activity volumes and especially operating costs can survive," Neacsu said.Beyond inflation, other causes behind the large number of companies in distress include higher taxes, increases in the minimum wage, reduced supplier credit and limited access to financing."Unfortunately, many companies failed to anticipate economic trends and did not restructure their activity. They borrowed, opened new lines of business and made poor strategic bets. As a result, many have been rolling over debts and leases in the hope that next year will be better. Unfortunately, the economy has performed increasingly weakly, just as we anticipated," he added.According to Sierra Quadrant, in 2026 more than ever business expertise will make the difference between companies that fail and those that expand and gain unexpected market share. "Entrepreneurs should know they can avoid such situations by implementing business recovery programmes, from restructuring agreements to preventive concordat procedures," the coordinating partner said.With over 27 years of experience in Romania's business environment, Sierra Quadrant is one of the leading companies specialising in complex administration and liquidation assignments involving large and diversified assets and multiple legal issues that must be resolved alongside insolvency proceedings, including environmental liabilities, hazardous substances, unclear easements and property-related litigation.