Romania ranks 50th out of 149 countries included in the Legatum Prosperity Index 2016, which measures a series of economic and social factors, including wealth, economic growth, education, health, personal well-being, and quality of life.

“An improved business environment, more personal freedom and efforts to improve governance have helped Romania climb into the top 50 for prosperity,” according to the Legatum Institute.

However, Romania is second to last in the EU, only neighbouring Bulgaria ranking lower than Romania, namely 57th. Hungary, on the other hand, is at number 47, Greece is ranked 44th, Poland is 34th, and the Czech Republic is 27th.

The best-ranked EU state is Finland –3rd, followed by the Netherlands – 7th, Sweden – 8th, Denmark – 9th, and the UK – 10th.

The overall ranking is led by New Zealand, followed in order by Norway, Finland, Switzerland, and Canada. Romania is just behind South Africa and Argentina, and ahead of countries such as Suriname, Brazil, and Macedonia.

In the prosperity sub-index rankings, Romania performs best on Business Environment (41st) and Safety & Security (46th), and scores lowest on the Social Capital (97th). Romania also ranks 85th on Health, 65th on the Economic Quality sub-index, 64th on Governance, 61st on Natural Environment, 48th on Personal Freedom, and 47th on Education.

“Since joining the EU in 2007, Romania has seen a gradual improvement in its delivery of prosperity, outperforming Bulgaria, who joined the EU in the same year. Rapid economic growth, increased foreign investment, and further market liberalisation have led to a more flexible and dynamic business environment. Increased openness and tolerance have left Romanians feeling more free to live their lives as they choose. However, as with other post-Communist states, corruption and governance remain a major concern,” according to the Legatum Institute.

Romania also ranked 50th in the 2015 ranking, up from 51st in 2014, 59th in 2013, and 60th in 2012. The Legatum Prosperity Index is an annual ranking developed by the Legatum Institute, a division of the private investment firm Legatum.

Find the overall Prosperity ranking here.

Irina Popescu, irina.popescu@romania-insider.com