World Bank Endorses Partnership Framework to Boost Romania's Growth and Resilience

Over the past two decades, Romania has made significant strides in its economic development, with per capita income rising from 26.4% of the EU average in 2000 to 78% in 2023.

The World Bank Group’s Board of Executive Directors has approved a new five-year Country Partnership Framework (CPF) for Romania, aimed at reducing poverty and promoting prosperity throughout the country. This framework seeks to enhance human capital outcomes, create better job opportunities, foster a more competitive economy, and accelerate the green transition.

Over the past two decades, Romania has made significant strides in its economic development, with per capita income rising from 26.4% of the EU average in 2000 to 78% in 2023. The country has shown remarkable resilience against various external challenges; however, regional inequalities and high poverty rates remain pressing issues.

The CPF intends to revitalize Romania’s growth model, enhance productivity, and bolster the nation’s capacity to tackle global challenges, particularly climate change. It focuses on three main areas:

Expanding Access to Essential Services: Improving access to education, healthcare, and social services, particularly for underserved populations.

Unlocking Private Capital: Creating a more dynamic business environment to foster job creation and stimulate private investment.

Strengthening Resilience: Building capacity to prepare for and respond to external shocks while facilitating the energy transition.

“The World Bank Group is proud to continue supporting Romania as it advances its ambitious reform agenda and builds on the gains made in recent years,” said Anna Akhalkatsi, World Bank Country Director for the European Union. “This framework comes at a crucial time as Romania seeks to balance economic growth, climate resilience, and social inclusion.”

Ary Naïm, IFC Regional Manager for Central and South Europe, emphasized the importance of attracting private investment: “This new Country Partnership Framework highlights the World Bank Group’s commitment to unlocking private-sector potential for sustainable and inclusive growth. We aim to help Romania attract fresh investment in green innovation, infrastructure, and new value chains.”

In conjunction with the CPF, the Board also approved a new Disaster Risk Management Loan, which includes a Catastrophe Deferred Drawdown option. This $500 million loan aims to help Romania implement key reforms and strengthen its capacity for inclusive preparedness and response to disasters and climate-related challenges. The initiative will be supported by technical assistance from the Global Facility for Disaster Reduction and Recovery.

Since 1991, the World Bank has provided Romania with over $15.4 billion in loans, guarantees, and grants. The current portfolio encompasses a mix of investment lending, analytical work, and technical assistance aligned with Romania’s reform priorities. Additionally, the IFC has invested over $5 billion in projects supporting private sector development. Building on over 30 years of collaboration, the World Bank Group and Romania are set to continue their partnership in this new phase, working together towards a future free from poverty.