Economy in Romania

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Economy—overview: Nowadays Romania is recovering from being one of the poorer countries in the region (due to a difficult transition from communism to a market-based economy). After the collapse of the Soviet Bloc in 1989-91 Romania was left with an obsolete industrial base and a pattern of industrial capacity wholly unsuited to its needs. For the next few years the country lagged behind most of its neighbors in the pace of restructuring.
Then in February 1997 Romania embarked on a comprehensive macroeconomic stabilization and structural reform program. The domestic foreign exchange market was freed and controls on current-account convertibility were removed in October. Restructuring programs include liquidating large energy-intensive industries and agricultural and financial sector reform. The private sector share of GDP rose to an estimated 58% in 1997 however this total includes firms with government-held minority stakes.
Although progress has been made in privatizing small- and medium-sized firms delays in structural reforms—including the postponement of sales of large state-owned enterprises - threaten plans to revive GDP growth. In 1998 GDP will likely be unchanged; and inflation is projected to fall to 45% from 151% in 1997.
In 2003 the euro was made the official foreign currency reference, though the US dollar is still widely mentioned. In 2006 the Romanian currency, ROL, evolved to a newer and stronger value, re-named RON, and its evolution on the global market was very visible. January 2007 also marks the integration of Romania in the European Union.

GDP: purchasing power parity—$114.2 billion (1997 est.)

GDP—real growth rate: -6.6% (1997 est.)

GDP—per capita: purchasing power parity—$5 300 (1997 est.)

GDP—composition by sector:

agriculture: 19%

industry: 36%

services: 45% (1996)

Inflation rate—consumer price index: 151% (1997 est.)

Labor force:

total: 10.1 million (1996 est.)

by occupation: industry 28.6% agriculture 34.4% trade 10.4% construction 5.1% other 21.5% (1995)

Unemployment rate: 8.8% (1997 est.)

Budget:

revenues: $10 billion

expenditures: $11.7 billion including capital expenditures of $1.3 billion (1997 est.)

Industries: mining timber construction materials metallurgy chemicals machine building food processing petroleum production and refining

Industrial production growth rate: -5.9% (1997 est.)

Electricity—capacity: 22.06 million kW (1995)

Electricity—production: 55.19 billion kWh (1995)

Electricity—consumption per capita: 2 412 kWh (1995)

Agriculture—products: wheat corn sugar beets sunflower seed potatoes grapes; milk eggs meat

Exports:

total value: $8.4 billion (f.o.b. 1997 est.)

commodities: textiles and footwear 27.5% metals and metal products 16.2% mineral products 9.0% chemicals 11.2% other 36.1% (1996)

partners: Germany 18.1% Italy 16.7% France 5.6% Turkey 5% Netherlands 4.2% China 3.0% (1996)

Imports:

total value: $10.4 billion (f.o.b. 1997 est.)

commodities: fuels and minerals 24% machinery and transport equipment 25% food and agricultural goods 7.6% chemicals 12.5% other 30.9% (1996)

partners: Germany 17.1% Italy 15.6% Russia 12.6% France 5.0% US 3.8% Egypt 3.8% (1996)

Debt—external: $10 billion (1997 est.)

Economic aid:

recipient: $NA

Currency: 1 leu nou (RON) = 100 bani

Exchange rates: lei (L) per US$1 - 33,000 (2003); 8,293.40 (January 1998); 7,167.94 (1997); 3,084.22 (1996); 2,033.28 (1995); 1,655.09 (1994); 760.05 (1993) - The currency will be re-valued by 2005 by removing the last 4 zeros from the Lei, changing the 1,000,000 Lei bill to 100 Hard Lei.

RON per US$1- 2,6 (January 2007)

Fiscal year: calendar year

Contributors
January 14, 2007 change by psychoralu (1 point)

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