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Romania: Economy Overview

04 November 2009
by Ina Dimireva -- last modified 04 November 2009

Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets.


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Economy Overview

Domestic consumption and investment have fueled strong GDP growth in recent years, but have led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty. Corruption and red tape continue to handicap its business environment. Inflation rose in 2007-08, driven in part by strong consumer demand and high wage growth, rising energy costs, a nation-wide drought affecting food prices, and a relaxation of fiscal discipline. Romania's strong GDP growth moderated markedly in the last quarter of 2008 as the country began to feel the effects of a global downturn in financial markets and trade, and growth is expected to be much weaker in 2009. Romania hopes to adopt the euro by 2014.

GDP (purchasing power parity):

$271.4 billion (2008 est.)
country comparison to the world: 42
$253.4 billion (2007 est.)
$238.6 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate):

$199.7 billion (2008 est.)

GDP - real growth rate:

7.1% (2008 est.)
country comparison to the world: 35
6.2% (2007 est.)
7.9% (2006 est.)

GDP - per capita (PPP):

$12,200 (2008 est.)
country comparison to the world: 90
$11,400 (2007 est.)
$10,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector:

agriculture: 8.1%
industry: 36%
services: 55.9% (2008 est.)

Labor force:

9.32 million (2008 est.)
country comparison to the world: 53

Labor force - by occupation:

agriculture: 29.7%
industry: 23.2%
services: 47.1% (2007 est.)

Unemployment rate:

4.4% (2008 est.)
country comparison to the world: 55
4.1% (2007 est.)

Investment (gross fixed):

33.3% of GDP (2008 est.)
country comparison to the world: 13

Budget:

revenues: $65.29 billion
expenditures: $74.99 billion (2008 est.)

Inflation rate (consumer prices):

7.8% (2008 est.)
country comparison to the world: 123
4.8% (2007 est.)

Commercial bank prime lending rate:

NA% (31 December 2008)
country comparison to the world: 55
13.35% (31 December 2007)

Stock of domestic credit:

$72.85 billion (31 December 2008)
country comparison to the world: 54
$58.76 billion (31 December 2007)

Agriculture - products:

wheat, corn, barley, sugar beets, sunflower seed, grapes; egg, sheep

Industries:

electric machinery and equipment, textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining

Industrial production growth rate:

7.1% (2008 est.)
country comparison to the world: 27

Oil - production:

112,400 bbl/day (2007 est.)
country comparison to the world: 49

Natural gas - production:

12.5 billion cu m (2007 est.)
country comparison to the world: 39

Current account balance:

-$23.02 billion (2007 est.)
country comparison to the world: 178
-$23.02 billion (2007 est.)

Exports:

$49.41 billion (2008 est.)
country comparison to the world: 56
$40.32 billion (2007 est.)

Exports - commodities:

machinery and equipment, textiles and footwear, metals and metal products, minerals and fuels, chemicals, agricultural products

Exports - partners:

Germany 16.5%, Italy 15.6%, France 7.4%, Turkey 6.6%, Hungary 5.1%, Bulgaria 4.2% (2008)

Imports:

$76.17 billion (2008 est.)
country comparison to the world: 43
$64.54 billion (2007 est.)

Imports - commodities:

machinery and equipment, fuels and minerals, chemicals, textile and products, metals, agricultural products

Imports - partners:

Germany 16.3%, Italy 11.4%, Hungary 7.4%, Russia 6%, France 5.7%, Turkey 4.9%, Austria 4.9%, Kazakhstan 4.6%, China 4.2% (2008)

Debt - external:

$101.6 billion (31 December 2008)
country comparison to the world: 37
$NA (31 December 2007)

Stock of direct foreign investment - at home:

$72.61 billion (31 December 2008 est.)
country comparison to the world: 43
$62.86 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad:

$921 million (2008 est.)
country comparison to the world: 72
$1.238 billion (31 December 2007 est.)

Exchange rates:

lei (RON) per US dollar - 2.5 (2008 est.), 2.43 (2007), 2.809 (2006), 3 (2005), 3 (2004)

Source: CIA - The World Factbook

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