Romania Economy Profile 2009

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 2007-08, 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.)
$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.)
6.2% (2007 est.)
7.9% (2006 est.)

GDP - per capita (PPP)

$12,200 (2008 est.)
$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.)

Population below poverty line

25% (2005 est.)

Labor force

9.32 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

4.4% (2008 est.)
4.1% (2007 est.)

Household income or consumption by percentage share

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

Distribution of family income - Gini index

32 (2008)
28.8 (2003)

Investment (gross fixed)

33.3% of GDP (2008 est.)

Budget

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

Public debt

14.7% of GDP (2008 est.)
23.6% of GDP (2004 est.)

Inflation rate (consumer prices)

7.8% (2008 est.)
4.8% (2007 est.)

Central bank discount rate

NA%

Commercial bank prime lending rate

NA% (31 December 2008)
13.35% (31 December 2007)

Stock of money

$25.3 billion (31 December 2008)
$25.17 billion (31 December 2007)

Stock of quasi money

$36.09 billion (31 December 2008)
$34.96 billion (31 December 2007)

Stock of domestic credit

$72.85 billion (31 December 2008)
$58.76 billion (31 December 2007)

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.)

Electricity - production

58.25 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 62.5%
hydro: 27.6%
nuclear: 9.9%
other: 0% (2001)

Electricity - consumption

48.43 billion kWh (2006 est.)

Electricity - exports

3.362 billion kWh (2007 est.)

Electricity - imports

1.277 billion kWh (2007 est.)

Oil - production

112,400 bbl/day (2007 est.)

Oil - consumption

238,200 bbl/day (2006 est.)

Oil - imports

219,000 bbl/day (2005)

Oil - exports

125,200 bbl/day (2005)

Oil - proved reserves

600 million bbl (1 January 2008 est.)

Natural gas - production

12.5 billion cu m (2006 est.)

Natural gas - consumption

17.09 billion cu m (2007)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

4.8 billion cu m (2007 est.)

Natural gas - proved reserves

63 billion cu m (1 January 2008 est.)

Current Account Balance

-$24.81 billion (2008 est.)
-$23.02 billion (2007 est.)

Agriculture - products

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

Exports

$49.41 billion (2008 est.)
$40.32 billion (2007 est.)

Exports - commodities

machinery and equipment, textiles and footwear, metals and metal products, machinery and equipment, 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.)
$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)

Reserves of foreign exchange and gold

$39.47 billion (31 December 2008 est.)
$39.96 billion (31 December 2007 est.)

Debt - external

$101.6 billion (31 December 2008)
$NA (31 December 2007 est.)

Stock of direct foreign investment - at home

$72.61 billion (31 December 2008 est.)
$62.86 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$921 million (31 December 2008 est.)
$1.238 billion (31 December 2007 est.)

Market value of publicly traded shares

$19.92 billion (31 December 2008)
$44.93 billion (31 December 2007)
$32.78 billion (31 December 2006)

Economic aid - recipient

$914.3 million (2004)

Currency (code)

ROL

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

Fiscal year

calendar year