Romania Economy Profile 2008

Economy - overview

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. 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 for the first time in eight years, driven in part by the depreciation of the currency, rising energy costs, a nation-wide drought affecting food prices, and a relaxation of fiscal discipline. Romania hopes to adopt the euro by 2014.

GDP (purchasing power parity)

$246.7 billion (2007 est.)

GDP (official exchange rate)

$158.5 billion (2007 est.)

GDP - real growth rate

5.9% (2007 est.)

GDP - per capita (PPP)

$11,100 (2007 est.)

GDP - composition by sector

agriculture: 7.9%
industry: 35.6%
services: 56.5% (2007 est.)

Population below poverty line

25% (2005 est.)

Household income or consumption by percentage share

lowest 10%: 1.2%
highest 10%: 20.8% (2006)

Inflation rate (consumer prices)

6.6% (2007 est.)

Investment (gross fixed)

26.9% of GDP (2007 est.)

Labor force

9.35 million (2007 est.)

Labor force - by occupation

agriculture: 29.7%
industry: 23.2%
services: 47.1% (2006)

Unemployment rate

4.1% (2007 est.)

Distribution of family income - Gini index

31 (2005)

Budget

revenues: $56.29 billion
expenditures: $60.41 billion (2007)

Public debt

18.7% of GDP (2007 est.)

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

5.4% (2007)

Electricity - production

60.52 billion kWh (2007)

Electricity - consumption

58.49 billion kWh (2007)

Electricity - exports

3.33 billion kWh (2007)

Electricity - imports

1.29 billion kWh (2007)

Oil - production

122,700 bbl/day (2005 est.)

Oil - consumption

236,000 bbl/day (2005 est.)

Oil - imports

181,100 bbl/day (2004)

Oil - exports

92,510 bbl/day (2004)

Oil - proved reserves

955.6 million bbl (1 January 2006 est.)

Natural gas - production

12.24 billion cu m (2007)

Natural gas - consumption

17.09 billion cu m (2007)

Natural gas - exports

0 cu m (2007)

Natural gas - imports

4.851 billion cu m (2007)

Natural gas - proved reserves

96.41 billion cu m (1 January 2006 est.)

Current Account Balance

-$22.6 billion (2007)

Agriculture - products

wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes; eggs, sheep

Exports

$40.25 billion f.o.b. (2007)

Exports - commodities

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

Exports - partners

Italy 17.9%, Germany 15.7%, Turkey 7.7%, France 7.5%, Hungary 4.9%, UK 4.7% (2006)

Imports

$64.33 billion f.o.b. (2007)

Imports - commodities

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

Imports - partners

Germany 15.2%, Italy 14.5%, Russia 7.8%, France 6.5%, Turkey 4.9%, China 4.3% (2006)

Reserves of foreign exchange and gold

$37.24 billion (31 December 2007)

Debt - external

$84.74 billion (31 December 2007)

Stock of direct foreign investment - at home

$60.65 billion (2007)

Stock of direct foreign investment - abroad

$992.3 million (2007)

Market value of publicly traded shares

$45.42 billion (2007)

Economic aid - recipient

$914.3 million (2004)

Currency (code)

"new" leu (RON) was introduced in 2005; "old" leu (ROL) was phased out in 2006; note - because of currency revaluation, 10,000 ROL = 1 RON

Exchange rates

lei per US dollar - 2.43 (2007), 2.809 (2006), 3 (2005), 3 (2004), 3 (2003)

Fiscal year

calendar year