Romania is a fast developing, high income mixed economy with a very high Human Development Index and a skilled labour force, ranked 10th in the European Union by total nominal GDP and 8th largest when adjusted by purchasing power parity.
The Romanian economy is the 40st-largest economy in the world, with a $517.5 billion annual output (PPP). In recent years, Romania enjoyed some of the highest growth rates among EU countries: 6% in 2016, 7% in 2017, and 4,1% in 2018. Growth is expected to slow down to +3.8% in 2019. Extrapolating current trends, the country's GDP is projected to surpass $1,000 billion (PPP) before 2035.
Romania is of the leading destinations in Central and Eastern Europe for foreign direct investment: the cumulative inward FDI in the country since 1989 totals more than $170 billion. Romania is the largest electronics producer in Central and Eastern Europe. In the past 20 years Romania has also grown into a major center for mobile technology, information security, and related hardware research Dacia automobiles. Up until the late 2000s financial crisis, the Romanian economy had been referred to as a "Tiger" due to its high growth rates and rapid development. Until 2009, Romanian economic growth was among the fastest in Europe (officially 8.4% in 2008 and more than three times the EU average). Romania is rich in iron ore, oil, salt, uranium, nickel, copper and natural gas. The country is a regional leader in multiple fields, such as IT and motor vehicle production. Bucharest, the capital city, is one of the leading financial and industrial centres in Eastern Europe.
The top 10 exports of Romania are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics. Imports of goods and services increased 9.3%, while exports grew 7.6% in 2016, as compared to 2015. Exports of goods and services are expected to grow by 5.6% in 2017, while imports are seen increasing by 8.5%, according to the latest CNP (National Prognosis Commission) projections .
|Economy of Romania|
|Currency||Leu (Leu or RON)|
|European Union, WTO, BSEC|
|GDP||$239.851 billion (nominal, 2018) $516.336 billion (PPP, 2018)|
|GDP rank||48th (nominal, 2018) 40th (PPP, 2018)|
|4.8% (2016) 7.0% (2017) 4.1% (2018e) 3.6% (2019f)|
GDP per capita
|$12,285 (nominal, 2018) $26,446 (PPP, 2018)|
GDP per capita rank
|62nd (nominal, 2017) 57th (PPP, 2017)|
GDP by sector
|agriculture: 4.2% industry: 33.2% services: 62.6% (2017 est.)|
|3.275% (2019f est.) 4.631% (2018) 1.344% (2017)|
Population below poverty line
|23.6% (2017, Eurostat)|
|35.9 (2019) 33.1 medium (2017, Eurostat)|
|8.951 million (2017 est.)|
Labour force by occupation
|agriculture: 28.3% industry: 28.9% services: 42.8% (2014)|
|Unemployment||4.2% (2018, Eurostat)|
Average gross salary
|4,512 RON / 1147 $, monthly (April, 2018)|
|619 € / 700 $, monthly (January, 2019)|
|electric machinery and equipment, textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining|
|Exports||$84.92 billion (2018 est.)|
|machinery and equipment, metals and metal products, textiles and footwear, chemicals, agricultural products, minerals and fuels|
Main export partners
| Germany 21.4% |
United Kingdom 4.3% (2016 est.)
|Imports||$88.12 billion (2018 est.)|
|machinery and equipment, chemicals, fuels and minerals, textile and products, agricultural products|
Main import partners
| Germany 20.5% |
Netherlands 4.1% (2016 est.)
|$94 billion (31 December 2017 est.) Abroad: $6.822 billion (31 December 2017 est.)|
|-$7.114 billion (2017 est.)|
Gross external debt
|$95.97 billion (36.8% of GDP) (31 December 2017 est.)|
|36.8% of GDP (2017 est.)|
|-2.8% (of GDP) (2017 est.)|
|Revenues||62.14 billion (2017 est.)|
|Expenses||68.13 billion (2017 est.)|
|Economic aid||$100 billion EU structural funds (2007–13)|
$100 billion EU structural funds (2014–20)
|$44.43 billion (31 December 2017 est.)|
After World War I, the application of radical agricultural reforms and the passing of a new constitution created a democratic framework and allowed for quick economic growth (industrial production doubled between 1923–1938, despite the effects of the Great Depression). With oil production of 7.2 million tons in 1937, Romania ranked second in Europe and seventh in the world. The oil extracted from Romania was essential for the German war campaigns.
Before World War II, Romania was Europe's second-largest food producer.
After the Second World War, Romania became a member of the Eastern Bloc, and switched to a Soviet-style command economy. During this period the country experienced rapid industrialization in an attempt to create a "multilaterally developed socialist society". Economic growth was further fueled by foreign credits in the 1970s, but this eventually led to a growing foreign debt, which peaked at $11–12 billion.
Romania's debt was largely paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion. Around 58% of the country's gross national income came from industry, and another 15% came from agriculture. The minimum wage was 2,000 lei, or $135.
Privatization of industry started with the 1992 transfer of 30% of the shares of some 6,000 state-owned enterprises to five private ownership funds, in which each adult citizen received certificates of ownership. The remaining 70% ownership of the enterprises was transferred to a state ownership fund, with a mandate to sell off its shares at the rate of at least 10% per year. The privatization law also called for direct sale of some 30 specially selected enterprises and the sale of "assets" (i.e., commercially viable component units) of larger enterprises.
As of 2008, inflation stood at 7.8%, up from 4.8% in 2007 estimated by the BNR at coming within 6% for the year 2006 (the year-on-year CPI, published in March 2007, is 3.66%). Also, since 2001, the economy has grown steadily at around 6–8%. Therefore, the PPP per capita GDP of Romania in 2008 was estimated to be between $12,200 and $14,064.
Financial and technical assistance continued to flow in from the U.S., European Union, other industrial nations, and international financial institutions facilitating Romania's reintegration into the world economy. The International Monetary Fund (IMF), World Bank (IBRD), the European Bank for Reconstruction and Development (EBRD), and the U.S. Agency for International Development (USAID) all had programs and resident representatives in Romania. Romania also attracted foreign direct investment, which in 2008 rose to $72 billion.
Romania was the largest U.S. trading partner in Central-Eastern Europe until Ceauşescu's 1988 renunciation of Most Favored Nation (non-discriminatory) trading status, the latter of which resulted in high U.S. tariffs on Romanian products. Congress approved restoration of the MFN status effective 8 November 1993, as part of a new bilateral trade agreement. Tariffs on most Romanian products dropped to zero in February 1994 with the inclusion of Romania in the Generalized System of Preferences (GSP). Major Romanian exports to the U.S. include shoes and clothing, steel, and chemicals.
Romania signed an Association Agreement with the EU in 1992 and a free trade agreement with the European Free Trade Association (EFTA) in 1993, codifying Romania's access to European markets and creating the basic framework for further economic integration. At the Helsinki Summit in December 1999, the European Union invited Romania to formally begin accession negotiations. In 2002, the target date of 2007 was set for Romania, along with Bulgaria, for its accession efforts. This was confirmed in 2003 at the Thessaloniki Summit and then in early 2005 Romania and Bulgaria signed the adherence treaty to EU. They formally joined the EU on 1 January 2007.
During the latter part of the Ceauşescu period, Romania earned significant credits from several Arab countries, notably Iraq, for work related to the oil industry. In August 2005, Romania agreed to forgive 43% of the US$1.7 billion debt owed by an Iraq still largely occupied by the military forces of the U.S.-led "Coalition of the Willing", making Romania the first country outside of the Paris Club of wealthy creditor nations to forgive Iraqi debts.
Growth in 2000–07 was supported by exports to the EU, primarily to Italy and Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 2% of GDP are beginning to decline as demand for Romanian products in the European Union increases. Accession to the EU gives further impetus and direction to structural reform.
In early 2004 the government passed increases in the value-added tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned bank Banca Comercială Română took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds is expected to accelerate economic growth. However, the Romanian economy was affected by the financial crisis of 2007–08 and contracted in 2009.
The level of investment remains above EU average. Investment accounts for almost 25% of GDP in Romania as opposed to 19% of GDP in the EU, in 2016.
On 1 January 2007 Romania entered the EU. This led to some immediate international trade liberalization. Romania is part of the European single market which represents more than 508 million consumers. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation. This is to be contrasted with enormous current account deficits. Low interest rates guarantee availability of funds for investment and consumption. For example, a boom in the real estate market started around 2000 and has not subsided yet. At the same time annual inflation in the economy is variable and during the mid-2000s (2003–2008) has seen a low of 2.3% and high of 7.8%.
In the winter of 2004 the government introduced a flat tax of 16% that was introduced on 1 January 2005. This is done in hope for higher GDP growth and greater tax collection rates. The reform, which some called a "revolution" in taxation, was met with mild discussions and some protests by affected working classes. Romania subsequently enjoyed the lowest fiscal burden in the European Union, until Bulgaria also switched to a flat tax of 10% in 2007.
The accession of Romania and Bulgaria to the European Union has given the Union access to the Black Sea. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism.
Romania posted an economic growth of 6 percent in 2016, the biggest among European Union member states. According to Bloomberg, the country’s economic growth advanced at the fastest pace since 2008. It is now considered the next tech-startup hub country in EU. Nowadays, that Romania’s digital infrastructure ranks higher than other eastern and central European countries makes it an attractive place to start a tech business.
IMF for 2018 published the following data:
|$/per capita (PPP)||26,498||28,189||29,815||31,521||33,268||35,124|
|$/per capita (Nominal)||12,575||13,664||14,828||15,986||17,229||18,520|
In the Romanian press the economy has been referred to as the "Tiger of the East" during the 2000s. Romania is a country of considerable economic potential: over 10 million hectares of agricultural land, diverse energy sources (coal, oil, natural gas, hydro, nuclear and wind), a substantial, if aging, manufacturing base and opportunities for expanded development in tourism on the Black Sea and in the mountains.
Net investments in Romania’s economy totaled RON 33.6 billion (EUR 7.2 billion) in the first half of 2018, up by 5.8% compared to the same period of 2017, according to data released by the National Statistics Institute (INS).
The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green.
(in Bil. US$ PPP)
|GDP per capita
(in US$ PPP)
(in % of GDP)
|1980||107.0||4,769||3.3 %||1.5 %||n/a||n/a|
|1981||117.1||5,188||0.1 %||2.2 %||n/a||n/a|
|1982||129.3||5,698||3.9 %||16.9 %||n/a||n/a|
|1983||142.4||6,253||6.0 %||4.7 %||n/a||n/a|
|1984||156.3||6,836||6.0 %||−0.3 %||n/a||n/a|
|1985||161.1||7,016||−0.1 %||−0.2 %||4.0 %||n/a|
|1986||168.4||7,291||2.4 %||0.7 %||3.9 %||n/a|
|1987||174.0||7,493||0.8 %||1.1 %||3.7 %||n/a|
|1988||179.2||7,677||−0.5 %||2.6 %||3.7 %||n/a|
|1989||175.4||7,486||−5.8 %||0.9 %||3.4 %||n/a|
|1990||171.7||7,319||−5.6 %||127.9 %||3.4 %||n/a|
|1991||154.5||6,594||−12.9 %||161.1 %||3.5 %||n/a|
|1992||144.1||6,177||−8.8 %||210.4 %||5.4 %||n/a|
|1993||149.8||6,456||1.5 %||256.1 %||9.2 %||n/a|
|1994||159.0||6,894||3.9 %||136.7 %||11.0 %||n/a|
|1995||173.9||7,586||7.1 %||32.3 %||9.9 %||n/a|
|1996||184.1||8,075||6.8 %||38.8 %||7.3 %||n/a|
|1997||175.9||7,756||−6.1 %||154.8 %||7.9 %||n/a|
|1998||169.3||7,501||−4.8 %||59.1 %||9.6 %||n/a|
|1999||169.9||7,564||−1.2 %||45.8 %||7.2 %||n/a|
|2000||178.8||7,970||2.9 %||45.7 %||7.6 %||17.6 %|
|2001||193.1||8,618||5.6 %||34.5 %||7.3 %||16.1 %|
|2002||206.2||9,462||5.2 %||22.2 %||8.3 %||16.0 %|
|2003||222.0||10,264||5.5 %||15.3 %||7.8 %||14.8 %|
|2004||247.1||11,484||8.4 %||11.9 %||8.0 %||10.5 %|
|2005||265.7||12,428||4.2 %||9.0 %||7.1 %||8.0 %|
|2006||296.0||13,923||8.1 %||6.6 %||7.2 %||3.8 %|
|2007||324.7||15,366||6.8 %||4.8 %||6.3 %||5.1 %|
|2008||358.4||17,369||8.3 %||7.8 %||5.5 %||8.1 %|
|2009||339.8||16,623||−5.9 %||5.6 %||6.3 %||15.4 %|
|2010||334.3||16,470||−2.8 %||6.1 %||7.0 %||22.9 %|
|2011||348.1||17,233||2.0 %||5.8 %||7.2 %||27.3 %|
|2012||358.9||17,859||1.2 %||3.3 %||6.8 %||28.9 %|
|2013||377.6||18,860||3.5 %||4.0 %||7.1 %||29.5 %|
|2014||396.2||19,855||3.1 %||1.1 %||6.8 %||29.7 %|
|2015||416.4||20,950||4.0 %||−0.6 %||6.8 %||29.7 %|
|2016||442.0||22,369||4.8 %||−1.6 %||5.9 %||27.9 %|
|2017||481.5||24,508||7.0 %||1.3 %||5.0 %||28.3 %|
The planned national budget for 2017 is 422 billion lei ($103 billion), with an estimated budget deficit to GDP of 1.1%.
GDP growth reached 8.3% in 2006 according to the statistical office of the Romania (the year-to-year growth amounted to unexpected 9.8% in the 3rd quarter of 2006 and stayed high at 9.5% year-to-year change in the 4th quarter of 2006), and 8.0% in 2007. In the first nine months of the year 2017, the Romanian GDP grew by 7% on gross series and by 6.9 percent on seasonally adjusted series.
Romania has growing middle and upper classes with relatively high per capita incomes. World Bank estimated that in 2002 99% of the urban and 94% of the rural population had access to electricity. In 2004, 91% of the urban and only 16% of the rural population had access to improved water supply and 94% of the urban population had access to improved sanitation. In 2017 there were about 22.5 million mobile phone users in Romania and about 18 million with internet access.
In March 2017, the gross average monthly wage was RON 3,256 (€716), and the net average monthly wage was RON 2,342 (€515).
Countries tend to benefit from sharing borders with developed markets as this facilitates trade and development. Below is a table of Romania's neighboring countries, their GDP per capita, and trade values between the pairs. In 2010, as little as 10.94pc of Romanian exports went to its neighbors; while 14.06pc of imports came from these five countries. For comparison, Germany alone accounted for 16.83pc of Romania's exports and 15.91pc of its imports.
|Country||GDP per capita,
PPP (current international $) 2017
in GDP PPP (%)
The ministry’s proposal is to increase the minimum gross wage in the economy to RON 2,080 (EUR 446) starting December 1, 2018. For employees working on positions that require upper education, the minimum gross salary will be RON 2,350 (EUR 504). The same minimum wage will apply to employees with a seniority of over 15 years.
62% of the 15.6 million Romanian adults had a wealth of less than USD 10,000.
Romania is the most popular tourist destination from Central and Eastern Europe with more than 15.7 million domestic and foreign tourists in 2018. This figure excludes people staying less than 24 hours in Romania, such as eastearn Europeans crossing Romania on their way to Asia or South Europe during the summer.
Romania is home to cities of much cultural interest (Bucharest being the foremost), beaches and seaside resorts, ski resorts, and rural regions that many enjoy for their beauty and tranquillity. Romania also attracts many religious pilgrims, which hosts several thousands visitors a year.
The leu (pronounced [ˈlew]), plural: lei ([ˈlej]); (ISO 4217 code RON; numeric code 946), "leo" (lion) in English is the currency of Romania. It is subdivided into 100 bani (singular: ban). On 1 July 2005, Romania underwent a currency reform, switching from the previous leu (ROL) to a new leu (RON). 1 RON is equal to 10,000 ROL. Romania joined the European Union on 1 January 2007 and initially hoped to adopt the euro in 2014, but with the deepening of the Euro crisis and with its own problems, such as a low workforce productivity, postponed its adoption plans indefinitely.
According to Bloomberg, the Romanian currency is the third-best performer against the euro in 2016 among currencies in CEE area, gaining 1.4 percent.
Romania, as a member state of the European Union, is required to adopt the common European currency, the Euro. For this reason Romania must fulfil the five Maastricht criteria, of which it met two as of May 2018.
|Assessment month||Country||HICP inflation rate[nb 1]||Excessive deficit procedure||Exchange rate||Long-term interest rate[nb 2]||Compatibility of legislation|
|Budget deficit to GDP||Debt-to-GDP ratio||ERM II member||Change in rate[nb 3]|
|2012 ECB Report[nb 4]||Reference values||Max. 3.1%[nb 5]
(as of 31 Mar 2012)
|None open (as of 31 March 2012)||Min. 2 years
(as of 31 Mar 2012)
|Max. ±15%[nb 6]
|Max. 5.80%[nb 7]
(as of 31 Mar 2012)
(as of 31 Mar 2012)
(Fiscal year 2011)
(Fiscal year 2011)
|2013 ECB Report[nb 8]||Reference values||Max. 2.7%[nb 9]
(as of 30 Apr 2013)
|None open (as of 30 Apr 2013)||Min. 2 years
(as of 30 Apr 2013)
|Max. ±15%[nb 6]
|Max. 5.5%[nb 9]
(as of 30 Apr 2013)
(as of 30 Apr 2013)
(Fiscal year 2012)
(Fiscal year 2012)
|Romania||4.1%||Open (Closed in June 2013)||No||-5.2%||6.36%||Unknown|
|2014 ECB Report[nb 10]||Reference values||Max. 1.7%[nb 11]
(as of 30 Apr 2014)
|None open (as of 30 Apr 2014)||Min. 2 years
(as of 30 Apr 2014)
|Max. ±15%[nb 6]
|Max. 6.2%[nb 12]
(as of 30 Apr 2014)
(as of 30 Apr 2014)
(Fiscal year 2013)
(Fiscal year 2013)
|2016 ECB Report[nb 13]||Reference values||Max. 0.7%[nb 14]
(as of 30 Apr 2016)
|None open (as of 18 May 2016)||Min. 2 years
(as of 18 May 2016)
|Max. ±15%[nb 6]
|Max. 4.0%[nb 15]
(as of 30 Apr 2016)
(as of 18 May 2016)
(Fiscal year 2015)
(Fiscal year 2015)
|2018 ECB Report[nb 16]||Reference values||Max. 1.9%[nb 17]
(as of 31 Mar 2018)
|None open (as of 3 May 2018)||Min. 2 years
(as of 3 May 2018)
|Max. ±15%[nb 6]
|Max. 3.2%[nb 18]
(as of 31 Mar 2018)
(as of 20 March 2018)
(Fiscal year 2017)
(Fiscal year 2017)
Romania is an oil and gas producer. The pipeline network in Romania included 2,427 km for crude oil, 3,850 km for petroleum products, and 3,508 km for natural gas in 2006. Several major new pipelines are planned, especially the Nabucco Pipeline for Caspian oilfields, the longest one in the world. Romania could cash in four billion dollars from the Constanta-Trieste pipeline.
Romania has considerable natural resources for a country of its size, including coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land and hydropower.
Romania's mineral production is adequate to supply its manufacturing output. Energy needs are also met by importing bituminous and anthracite coal and crude petroleum. In 2007 approximately 34 million tons of coal, approximately 4,000 tons of tungsten, 565,000 tons of iron ore, and 47,000 tons of zinc ore were mined. Lesser amounts of copper, lead, molybdenum, gold, silver, kaolin, and fluorite also were mined.
The energy sector is dominated by state-owned companies such as Termoelectrica, Hidroelectrica and Nuclearelectrica. Fossil fuels are the country's primary source of energy, followed by hydroelectric power.
Due to dependency on oil and gas imports from Russia, the country has placed an increasingly heavy emphasis on nuclear energy since the 1980s. The Cernavodă Nuclear Power Plant is the only one of its kind in Romania, although there are plans to build a second one in Transylvania, possibly after 2020.
For domestic heating and cooking 48% of rural and small-town households use directly burned solid fuel (almost exclusively domestically produced wood) as the main energy source.
Wind power had an installed capacity of 76 MW in 2008, and the country has the largest wind power potential in Southeast Europe, with Dobruja listed as the second-best place in Europe to construct wind farms. As a result, there are currently investor connection requests for over 12,000 MW. There are also plans to build a number of solar power stations, such as the Covaci Solar Park, which will be one of the largest in the world.
Of the electricity generated in 2007, 13.1 percent came from nuclear plants then in operation, 41.69 percent from thermal plants (oil and coal), and 25.8 percent from hydroelectric sites.
The volume of traffic in Romania, especially goods transportation, has increased in recent years due to its strategic location in South-East Europe. In the past few decades, much of the freight traffic shifted from rail to road. A further strong increase of traffic is expected in the future.
As of June 2015, 694 km of motorways are in use with Timisoara-Lugoj 26 km also to be finished in 2015, Lugoj-Deva to be finished in 2016 while Sibiu-Pitesti is still tendering. The railway network, which was significantly expanded during the Communist years, is the fourth largest in Europe.
Bucharest is the only city in Romania which has an underground railway system, comprising both the Bucharest Metro and the light rail system managed by Regia Autonomă de Transport Bucureşti. Although construction was planned to begin in 1941, due to geo-political factors, the Bucharest Metro was only opened in 1979. Now it is one of the most accessed systems of the Bucharest public transport network with an average ridership of 800,000 passengers during the workweek. In total, the network is 71 km long and has 53 stations.
Romania has become a natural gas exporter. Romanian Scientist, Lazar Edeleanu, had managed, for the first time in the world, to refine oil based products with sulphur dioxide, in other words separation from the oil of some hydrocarbon groups, without their chemical alteration.
Agriculture employs about 29% of the population (one of the highest rates in Europe), and contributes about 8.1% of GDP. The Bărăgan is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region.
Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. Romania is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the reforms and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) have resulted in reforms in the agricultural sector of the economy.
Fishing is an economic mainstay in parts of the East of Romania and along the Black Sea coast, with important fish markets in places such as Constanta, Galati and Tulcea. Fish such as european anchovy, sprat, pontic shad, mullet, goby, whiting, garfish, Black-Sea Turbot or horse mackerel are landed at ports such as Constanta.
There has been a large scale decrease in employment in the fishing industry within Romania due to the EU's Common Fisheries Policy, which places restrictions on the total tonnage of catch that can be landed, caused by overfishing in the Black Sea. In tandem with the decline of sea-fishing, commercial fish farms – especially in salmon, have increased in prominence in the rivers and lochs of the east of Romania. Inland waters are rich in fresh water fish such as salmon, trout, and in particular, carp which traditionally has been the most popular fish, including its eggs (icre), fresh or canned.
Romania has been successful in developing its industrial sector in recent years. Industry and construction accounted for 32% of gross domestic product (GDP) in 2003, a comparatively large share even without taking into account related services. The sector employed 26.4% of the workforce. Romania excels in the production of automobiles, machine tools, and chemicals. In 2013, some 410,997 automobiles were produced in Romania, up from 78,165 in 2000.
In 2004 Romania enjoyed one of the largest world market share in machine tools (5.3%). Romanian-based companies such as Dacia, Petrom, Rompetrol, Bitdefender, Romstal and Mobexpert have expanded operations throughout the region. However, small- to medium-sized manufacturing firms form the bulk of Romania's industrial sector.
Romania's industrial output is expected to advance 9% in 2007, while agriculture output is projected to grow 12%. Final consumption is also expected to increase by 11% overall – individual consumption by 14.4% and collective consumption by 10.4%. Domestic demand is expected to go up 12.7%.
Industrial output growth was 6.9% year-on-year in December 2009, making it the highest in the EU-27 zone which averaged −1.9%.
Romania has the third-highest percentage of women working in information and communications technologies (ICT) in Europe. 29% of their workforce is made up of women.
In 2003 service sector constituted 55% of gross domestic product (GDP), and the sector employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%). The service sector in Romania has expanded in recent years, employing some 47% of Romanians and accounting for slightly more than half of GDP.
The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Cora (hypermarket) (of the France) and Carrefour (a subsidiary of the French), have led to fewer workers in this sector and a migration of retail jobs to the suburbs.
Romania is aggressively promoting and developing its biotechnology industry. Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Romania. Romania features one of the world’s newest competitive bio-industries, in key areas as pharmacogenomics, protein engineering, glyco-engineering, tissue engineering, bio-informatics, genome medicine and preventive medicine. Romania is devoting substantial resources to developing universities and R&D facilities, increasing bioventure startups, growing bio-clusters (communities of biotechnology companies and institutions) and developing human resources, all with the goal of making it one of the world’s most advanced biotechnology regions.
The strength of the Romanian economy varies from region to region. GDP, and GDP per capita is highest in Bucharest. The following table shows the GDP (2015) per capita of the 4 counties and the capital city, with data supplied by CNP.
|Rank||Place||GDP per capita|
The highest GDP per capita is found in Bucharest and surrounding Ilfov County. Values well above the national average are found in Timiş, Argeş, Braşov, Cluj, Constanţa, Sibiu and Prahova. Values well below the national average are found in: Vaslui, Botoşani, Călăraşi, Neamţ, Vrancea, Suceava, Giurgiu, Mehedinţi, Olt and Teleorman.
Italy is Romania's largest trading partner; two-way trade totaled some $22.6 billion in 2007. The principal exports from Italy to Romania include computers, integrated circuits, aircraft parts and other defense equipment, wheat, and automobiles, along with remittances. Romania's chief exports to Italy include cut diamonds, jewelry, integrated circuits, printing machinery, and telecommunications equipment. 2.8% of the country's GDP is derived from Agricultural activity. While Romania imports substantial quantities of grain, it is largely self-sufficient in other agricultural products and food stuffs, due to the fact that food must be regulated for sale in the Romania retail market, and hence imports almost no food products from other countries.
Romania imported in 2006 food products of 2.4 billion euros, up almost 20% versus 2005, when the imports were worth slightly more than 2 billion euros. The EU is Romania's main partner in the trade with agri-food products. The exports to this destination represent 64%, and the imports from the EU countries represent 54%. Other important partners are the CEFTA countries, Turkey, Republic of Moldova and the USA. Despite a decline of the arms industry in the post-communist era, Romania is a significant exporter of military equipment, accounting for 3–4% of the world total in 2007. EU members are represented by a single official at the World Trade Organization.
During the first trimester of 2010, Romanian exports increased by 21%, one of the largest rates in the European Union, surpassed only by Malta. The trade deficit currently stands at roughly 2 billion EUR, the eighth largest in the EU.
Households with access to fixed and mobile telephone access
Broadband penetration rate
Individuals using computer and internet
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Much of the Romanian manufacturing industry consists of branch plants of foreign firms, though there are some important domestic manufacturers, such as Automobile Dacia, Ford Romania, Roman Braşov and Igero. In 2018, est. 500,000 automobiles were produced in Romania.Bucharest Stock Exchange
The Bucharest Stock Exchange (BVB) (Romanian: Bursa de Valori București) is the stock exchange of Romania located in Bucharest. As of November 2017, there are 88 companies (87 local and 1 international) listed on BVB's regulated market and 299 companies listed on AeRO market ( 297 local and 2 international) with a total market capitalization of €35.6 billion ($42.6 billion). Starting 2014 and up to date ( November 22, 2017), the main index BET went up by 19.9%, thus exceeding the maximum of the last 9 years.Construction industry of Romania
Construction activity (about 10% of GDP) has increased due to recent tax incentives. Romania is becoming an increasingly popular choice for British property investors, according to recent research from Currencies Direct. The latest Global Emerging Markets Index from the foreign exchange company shows that Romania has made the top ten for the first time, reaching number nine. The monthly index is based on the number of foreign exchange transfers undertaken by the firm to emerging market regions for property purchases. According to Currencies Direct, Romania has seen significant increases in house prices in recent years and its interest rate has dropped from a level of 154 per cent in 1997 to 8.9 per cent in 2005.
The construction industry in Romania contributed an estimated 5.95% in 2006 to the country's gross domestic product (GDP). Business Monitor International released Romania Infrastructure Report Q2 2007 in which they forecast an average industry growth rate of 6.84% over the 2007-2011 period.The construction industry has been receiving funds from foreign institutions including European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB). Furthermore, the Romanian Ministry of Environment and Water Management is making efforts to align the Romanian environment standards with the European standards. One of the ongoing projects in the country is the construction work on the various sections of the Bucharest-Brasov motorway. An increasing number of foreign companies are showing interest in electrical production capacities in the country. Companies include Germany's Siemens, U.S-based AES Corporation and Geneva-based Societe Bancaire Private.
However, the construction industry is subject to a number of risks, which can affect its growth. The rising budgetary deficit, for example, has had an increasingly adverse impact on the availability of funds for the infrastructure sector.
Despite the drawbacks, BMI ranked Romania 12th out of the 13 states included from the Emerging Europe for the infrastructure business environment. The construction industry is forecast to reach a value of RON36.2 billion (US$13.41 billion) by 2011, from an estimated RON20.88 billion (US$7.43 billion) in 2006.Prior to the start of the crisis, the Romanian construction industry was one of the most vibrant in the European Union, but this changed dramatically in 2009, when construction output fell by 15%, with a similar reduction following in 2010. In 2011 Romanian construction market should finally lead to a measure of stabilisation on the market, but growth is not likely to return before 2012. PMR Ltd released "Construction sector in Romania 2011-
Development forecasts for 2011–2013" report in which they forecast stabilisation and return to the overall construction market in 2012.Romanian civil engineering construction has registered considerably better performance in 2011 compared to the residential and non-residential segments, which posted decreases. The reason behind this is increased capital expenditure on infrastructure projects, particularly road and railway construction. Despite the strong economic downturn Romania experienced in 2009 and 2010, the value of civil engineering works has not decreased greatly, compared to the decreases in non-residential and residential construction. According to the latest PMR report, entitled Construction sector in Romania 2012 - Development forecasts for 2012-2014, civil engineering increased by nearly 16% in 2011, reaching RON 35 billion (€8.3 billion).Foreign direct investment in Romania
Foreign direct investment (FDI) in Romania has increased dramatically. In 2006 net foreign direct investment was inbound US$12 billion (EUR 9.1 billion). Cheap and skilled labor force, low taxes, a 16% flat tax for corporations and individuals, no dividend taxes, liberal labor code and a favorable geographical location are Romania’s main advantages for foreign investors. FDI has grown by 600% since 2000 to around $13.6 billion or $2,540 per capita by the end of 2004. In October 2005 new investment stimuli introduced – more favorable conditions to IT and research centers, especially to be located in the east part of the country (where is more unemployment), to bring more added value and not to be logistically demanding.Foreign trade of Romania
In 2012, Romania's largest trading partner was Germany, followed by Italy. Romania's main exports to Germany were insulated wire, cars and vehicle parts, whereas its main German imports are cars and vehicle parts. The principal Italian imports to Romania include hides, footwear parts, medicaments, telephones and vehicle parts. Romania's chief exports to Italy included leather footwear, cars, telephones, tobacco, men's suits, seats and iron pipes.
2.8% of the country's GDP is derived from agricultural activity. While Romania imports substantial quantities of grain, it is largely self-sufficient in other agricultural products and food stuffs. Food must be regulated for sale in the retail market, therefore Romania imports almost no food products from other countries. In 2006 Romania imported food products worth €2.4 billion, up almost 20% versus 2005, when imports were worth slightly more than €2 billion. The EU is Romania's main trade partner in agri-food products. Romanian EU exports represent 64%, and imports from EU countries represent 54%. Other important partners are the CEFTA countries, Turkey, Republic of Moldova and the USA.Romania is an important exporter of military equipment, accounting for 3-4% of the world total in 2007. EU members are represented by a single official at the World Trade Organization.International reserves of the National Bank of Romania
International reserves of the National Bank of Romania
At end-November 2007, foreign exchange reserves of the National Bank of Romania amounted to EUR 25,441 million.
The EUR 230 million increase in the month under review owed to the following:
EUR 641.4 million worth of inflows comprising incomes from international reserve management (including the rise in the market value of foreign bonds held with the National Bank of Romania), change in the foreign-exchange reserve requirements of commercial banks, a.s.o.
EUR 411.4 million worth of outflows consisting in principal repayments and interest payments on public and publicly guaranteed external debt, the change in foreign-exchange reserve requirements of commercial banks, a.s.o.
The gold stock stayed at 103.7 tonnes. However, following the developments in the world price of gold, its value dropped to EUR 1,792.98 million; as a result, the international reserves of the National Bank of Romania (foreign exchange and gold) stood at EUR 27.23 billion.
By end-2007, payments due on public and publicly guaranteed external debt amount to EUR 129 million.List of Romanian counties by GDP
This is a list of the 41 Romanian counties, and one city with special status (Bucharest, the national capital) by GDP and GDP per capita. The equivalent countries which are comparable to the Romanian counties in GDP are chosen by Worldbank data for the same year.List of Romanian regions by Human Development Index
This is a list of NUTS2 statistical regions of Romania by Human Development Index as of 2017.List of banks in Romania
This is a list of all the banks incorporated in Romania as of 7 January 2019.List of exports of Romania
Romania has a developing, upper-middle income market economy, the 17th largest in the European Union by total nominal GDP and the 11th largest based on purchasing power parity. The country is a regional leader in multiple fields, such as IT and motor vehicle production.In 2016, Romania was the 46th largest exporter of goods in the world.In 2015, Romania's largest trading partner was Germany, followed by Italy. Romania's main exports to Germany were insulated wire, cars and vehicle parts, whereas its main German imports are cars and vehicle parts. The principal Italian imports to Romania include hides, footwear parts, pharmaceuticals, telephones, and vehicle parts. Romania's chief exports to Italy included leather footwear, cars, telephones, tobacco, men's suits, seats and iron pipes.2.8% of the country's GDP is derived from agricultural activity. While Romania imports substantial quantities of grain, it is largely self-sufficient in other agricultural products and food stuffs. Food must be regulated for sale in the retail market, therefore Romania imports almost no food products from other countries. In 2006 Romania imported food products worth €2.4 billion, up almost 20% versus 2005, when imports were worth slightly more than €2 billion. The European Union is Romania's main trade partner in agri-food products. Romanian EU exports represent 64%, and imports from EU countries represent 54%. Other important partners are the Central European Free Trade Agreement countries, Turkey, Moldova and the United States.Mining industry of Romania
Romania ranks tenth in the world in terms of the diversity of minerals produced in the country. Around 60 different minerals are currently produced in Romania. The richest mineral deposits in the country are halite (sodium chloride).
Romania is an oil producer, but the level of production is not enough to make the country self-sufficient. As a result, it is a net oil and gas importer.
The pipeline network in Romania included 1,738 km for crude oil, 2,321 km for petroleum products, and 708 km for natural gas in 1999. Several major new pipelines are planned, especially the Nabucco Pipeline for Caspian oilfields, the longest one in the world.
According to the CIA World Factbook, other natural resources include coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land, hydropower. In Roșia Montană area is the largest gold deposit in continental Europe, estimated at over 300 tons of gold and 1,600 tons of silver, having a value of $3 billion.Romania's mineral production is adequate to supply its manufacturing output. Energy needs are also met by importing bituminous and anthracite coal and crude petroleum. In 2007 approximately 13.4 million tons of anthracite coal, approximately 4,000 tons of tungsten, 565,000 tons of iron ore, and 47,000 tons of zinc ore were mined. Lesser amounts of copper, lead, molybdenum, gold, silver, kaolin, and fluorite also were mined.
In 2016, Gabriel Resources launched arbitration and disclosed it sought $4.4 billion worth of damages from Romania at the World Bank. It accuses Romania of unfairly blocking the company's $2 billion project creating one of the continent's largest gold mines. The government then served the Canadian company with a $8.6 million taxes bill.Ministry of Economy (Romania)
The Ministry of Economy of Romania (Romanian: Ministerul Economiei) is one of the ministries of the Government of Romania.
The minister's seat is currently held by Mihai Fifor under Prime Minister Mihai Tudose.Nationalization in Romania
The nationalization of the means of production was a measure taken by Romania's new Communist authorities in order to lay the foundation of socialism. The act that allowed this measure to take place was Law 119, adopted by the Great National Assembly on June 11, 1948. Article 1 decreed subject to nationalization "all the wealth of the soil not in the property of the state at the time of entry into force of the Constitution of the Romanian People's Republic, as well as individual enterprises, societies of any type and private industrial, bank, insurance, mining, transport and telecommunications associations". Nationalized (generally without any form of compensation) were 8,894 industrial, mining, transport, banking and insurance companies, followed in November 1948 by 383 cinemas and medical-sanitary facilities. By 1950, the measure was applied to chemical enterprises, pharmacies and remaining economic entities.
The nationalization also included a significant number of homes. The figure of around 400,000 buildings is regularly mentioned. According to Societatea Academică din România (SAR) between 241.000 and 600.000 properties were affected by the measure.
The nationalization begun in 1948, together with the collectivization of agriculture (1949–62), were decisive in undoing the capitalist economy and establishing a socialist economy based on state-owned or cooperative property.
After the fall of communism in Romania, the state has tried to compensate homeowners and enterprise owners who could not recover their houses, industries, or lands. A special fund dedicated to compensation was created in 2005: Fondul Proprietatea.Petrochemical industry in Romania
Romania was the largest European producer of oil in World War II. The oil extracted from Romania was essential for Axis military operations. The petrochemical industry near Ploieşti was bombed heavily by American bombers (see Operation Tidal Wave). After the war, a heavy reconstruction and expansion was done under the communist regime. Since then, most of the industry has been privatized.
Possessing substantial oil refining capacities, Romania is particularly interested in the Central Asia-Europe pipelines and seeks to strengthen its relations with some Arab States of the Persian Gulf. With 10 refineries and an overall refining capacity of approximately 504,000 bbl/d (80,100 m3/d), Romania has the largest refining industry in the region. Romania's refining capacity far exceeds domestic demand for refined petroleum products, allowing the country to export a wide range of oil products and petrochemicals — such as lubricants, bitumen, and fertilizers — throughout the region.Romania and the euro
Romania is required by its EU accession agreement to replace the current national currency, the Romanian leu, with the euro, as soon as Romania fulfills all of the six nominal euro convergence criteria. The leu is not yet part of the European Exchange Rate Mechanism (ERM II), of which minimum two years of stable membership is one of the six nominal convergence criteria to comply with to qualify for euro adoption. The current Romanian government in addition established a self-imposed criteria to reach a certain level of "real convergence", as a steering anchor to decide the appropriate target year for ERM II-membership and euro adoption. As of March 2018, the scheduled date for euro adoption in Romania is 2024, according to Liviu Dragnea, head of the ruling Party of Social Democrats.Romanian property bubble
After the relative calm of the decade of the 1990s, since 2002 Romania has experienced a dramatic increase in property prices. Between 2002-2007 the median price for an old communist-era apartment rose by a factor of 10 (x 1000%), from around €10,000 to c. €100,000. Today some apartments in central Bucharest have prices comparable with those of properties in Paris or London, and in virtually every small town the median housing price rivals that of similar towns in the European Union.
The Romanian market is also atypical compared with other Central European countries. By contrast with Hungary, Poland or the Czech Republic subsequent to joining the European Union (where prices remained stationary), when Romania joined the EU in 2007, housing prices jumped by some 20%.Rușchița marble
Rușchița (Croatian: Ruščica; Serbian: Рушчица; Hungarian: Ruskica márvány; German: Ruschitza) is a reddish, pinkish or white marble found in Romania. The marble deposit is located in the north of Caraș-Severin County, about 10 km northwest of the village of Rusca Montană, in the Poiana Rusca Mountains.
Rușchița marble mining was done in the shape of a turned-over bell between 1884 and 1960. Nowadays the extraction is made in descending horizontal slices.Services in Romania
In 2003 service sector constituted 55% of gross domestic product (GDP), and the sector employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%).
The service sector in Romania is vast and multifaceted, employing some three quarters of Romanians and accounting for two thirds of GDP. The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Cora (hypermarket) (of the France) and Carrefour (a subsidiary of the French), have led to fewer workers in this sector and a migration of retail jobs to the suburbs.
The second largest portion of the service sector is the business services, employing only a slightly smaller percentage of the population. This includes the financial services, real estate, and communications industries. This portion of the economy has been rapidly growing in recent years. It is largely concentrated in the major urban centres, especially Bucharest (see Banking in Romania).
The education and health sectors are two of Romania's largest, but both are largely under the purview of the government. The health care industry has been rapidly growing, and is the third largest in Romania. Its rapid growth has led to problems for governments who must find money to fund it.
Romania has an important high tech industry, and also an entertainment industry creating content both for local and international consumption. Tourism is of ever increasing importance, with the vast majority of international visitors coming from the EU, though the recent strength of the Romanian leu has damaged this sector.Tourism in Romania
According to National Tourism Statistics 15.7 million domestic and foreign tourists stayed in overnight accommodations in 2018. Of these 2.2 million are recorded as foreign tourists.Romania’s tourism sector had a direct contribution of EUR 5.21 billion to the Gross Domestic Product (GDP) in 2018, slightly higher than in 2017, placing Romania on the 32nd place in the world, ahead of Slovakia and Bulgaria, but behind Greece and the Czech Republic. The total tourism sector’s total contribution to Romania’s economy, which also takes into account the investments and spending determined by this sector, was some EUR 15.3 billion in 2018, up by 8.4% compared to 2017.In the first three months of the year 2018, there were 3.12 millions of foreign tourists. Compared to the same 3 months of the previous year, arrivals increased by 10.9% and overnight stays in accommodation establishments increased by 7.1%.The most visited cities are Bucharest, Brașov, Sibiu, Cluj-Napoca, Timișoara, Iași, and Constanța. Natural touristic attractions include the Danube, the Carpathian Mountains, and the Black Sea.
Economy of Romania
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