The first platform of international trade in Egypt
Register here  |  Forgotten password?

Home > Country profiles > Economic and Political Outline

flag Romania Romania: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Since the early 1990s, successive governments have gradually promoted a liberal economic policy to privatize the state owned companies. Following its accession to the European Union in January 2007, Romania has begun a new phase of economic growth with substantial foreign investments. Like many other countries of the former Soviet bloc, its economy has been transformed into a market economy. The GDP has grown at a regular rhythm and a middle class has developed. Romania has become the second most dynamic country in the region after Poland. The unemployment rate, which was quite low before the financial crisis, has been growing since 2008 and reached 7.2% in 2011. Romania has one of the lowest public debts in the EU (around 35% of the GDP) and inflation stabilized at 4.6% in 2011.

However, even if Romania enjoys a significant potential, notably due to its rich agricultural land and its well-educated and high-qualified workforce, it still remains one of the poorest countries in Europe with a poverty rate of 6% of the population. Due to the financial crisis, Romania endured a strong economic slowdown, especially in the automobile sector which is subject to foreign demand and the country entered into recession in 2009-2011. The country, which managed to reduce its public deficit to 4.4% of the GDP in 2011, hopes to be able to bring it under the 3% limit in 2012. It should again grow in 2012, with an estimated rate of 1.8%.

Romania maintains its objective of joinging the eurozone in 2015.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 163.32161.63e185.32e203.45222.45
GDP (Constant Prices, Annual % Change) -7.1-1.3e1.5e3.53.8
GDP per Capita (USD) 7,6107,5428,666e9,53410,446
General Government Gross Debt (in % of GDP) 23.931.7e34.434.434.0
Inflation Rate (%) 5.66.16.44.33.2
Unemployment Rate (% of the Labor Force) 6.37.65.04.84.6
Current Account (billions USD) -6.84-6.96-8.32-9.29-10.25
Current Account (in % of GDP) -4.2-4.3-4.5-4.6-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture represents almost 7% of Romania's GDP and employs 28% of the country's active population. The main resources and agricultural production in Romania are cereals, sugar beets and potatoes. However, the production remains very low in comparison with the the country's potential capacity. About 25% of the country is covered by forest (especially around Transylvania) and the logging industry is developing very fast.

The industrial sector contributes to 37.3% of the country's GDP and employs almost a third of the active population. Historically, the manufacturing companies and the industrial sectors represent the backbone of Romania's economy. That is why many foreign direct investors are involved in heavy industry (metallurgy, steel), the manufacturing of vehicle parts, building and construction, petroleum refining and textiles. However, during the last few years, new technologies have been moving forward due to the growth of high-qualified workforce whose cost is lower than the European average.

Romania's economy is mainly centered in the services sector, which represents 55.7% of the GDP and employs 39% of the nation's workforce. Tourism, in particular, is booming.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 29.1 30.0 40.9
Value Added (in % of GDP) 7.1 26.2 66.7
Value Added (Annual % Change) 3.0 4.0 6.5

Source: World Bank - Last Available Data.

 

Find more information about your business sector on our service Market reports.

 
Monetary Indicators 20062007200820092010
Romanian New Leu (RON) - Average Annual Exchange Rate For 1 USD 2.812.442.523.053.18

Source: World Bank - Last Available Data.

 

Find out all the exchange rates daily on our service Currency converter.

 
Learn more about Market Analyses about Romania on Globaltrade.net, the Directory for International Trade Service Providers.
 

Indicator of Economic Freedom

Score:
64.7/100
Position:
Moderately free
World Rank:
58/179
Regional Rank:
26/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

Romanian exports have increased by almost 30% between 2006 and 2008. Imports have followed the same trend but with a volume of about two times higher (an increase of almost 60%). These results show that Romania remains too dependent on imports. The global economic crisis has accentuated the deficit in the balance of payments in 2009, which reached EUR 12 billion, meaning an increase of 15% in one year. In addition, Romania's main partners are also in economic difficulties themselves and the level of exports has decreased in a parallel way.

Romania's main export partners are Germany, Italy, France and Turkey. The country mainly exports industrial products. In both 2010 and 2011, the country's exports and imports increased, evidence of a global economic revival. Despite all, the deficit of the country's trade balance has not decreased and it should remain present in 2012.

Romania's main suppliers are Germany, Italy, Hungary and France. Imports have been rising since 2011. This growth can be explained essentially by the needs of export-oriented industrial activity. The strongest growth was therefore recorded in imports of electric and mechanical equipment and metal products (27% and 34% respectively), while the part of imports of consumer goods has been smaller.

 
Foreign Trade Indicators 20072008200920102011
Imports of Goods (million USD) 70,31484,05354,32461,87476,185
Exports of Goods (million USD) 40,48849,53540,56749,34362,653
Imports of Services (million USD) 8,75411,73110,0979,36510,778
Exports of Services (million USD) 9,38812,8029,7688,74110,326
Imports of Goods and Services (Annual % Change) 27.317.5-24.610.5-
Exports of Goods and Services (Annual % Change) 7.819.4-11.810.5-
Imports of Goods and Services (in % of GDP) 42.943.840.229.8-
Exports of Goods and Services (in % of GDP) 30.731.033.323.5-
Trade Balance (million USD) 24,56628,1829,6067,805-
Trade Balance (Including Service) (million USD) 24,03627,231---
Foreign Trade (in % of GDP) 73.674.873.653.2-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 18.1%
Italy 13.8%
France 8.3%
Turkey 6.9%
Hungary 4.8%
See More Countries 48.1%
Main Suppliers
(% of Imports)
2010
Germany 16.7%
Italy 11.6%
Hungary 8.7%
France 5.9%
China 5.5%
See More Countries 51.7%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.5%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 5.4%
Insulated "incl. enamelled or anodised" wire,...Insulated "incl. enamelled or anodised" wire, cable "incl. coaxial cable" and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made-up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors 5.2%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 4.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.2%
See More Products 75.1%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.4%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.8%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.1%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.3%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.1%
See More Products 83.3%

Source: Comtrade, Last Available Data

 
 

To go further, check out our service Import export flows.

Return to top

Sources of General Economic Information

Ministries
Romanian Ministry of the Economy and Finance
Statistical Office
National Institute of Romanian Statistics
Central Bank
National Bank of Romania
Stock Exchange
Bucharest Stock Exchange
Search Engines
Rol
Cautare Avansata
Romanian Voice
Economic Portals
Portal Info
Afacerinet

Return to top

Political Outline

Executive Power
The president is the head of the state and is elected by universal suffrage for a term of five years. The president is also the commander in chief of the army and is responsible for protecting the constitution. Under the Romanian constitution, the president acts as a mediator between the various centers of power in the country. The Prime Minister is appointed by the President (and is usually the leader of the majority party) for a term of four years. The Prime Minister is the head of government and holds executive power, including law enforcement and management of the affairs of the country. The Council of Ministers is appointed by the Prime Minister.
Legislative Power
The legislature in Romania is bicameral. The Parliament consists of: Senate (the upper house) having 137 seats and the Chamber of Deputies (the lower house) having 332 seats. The members of both houses are elected by direct, popular vote on a proportional representation basis to serve four-year terms. The executive branch of the government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. Prime Minister does not have the power to dissolve the Parliament directly, but President can do so after consultation with the political parties represented in the Parliamnet.The people of Romania have considerable political rights.
Main Political Parties
Romania has a multi-party system in which the parties usually agree to form coalition governments. The country's main parties are: - The PSD (Social Democrat Party) - which follows the social democratic ideology, - The PNL (National Liberal Party) - advocates liberalism, both economic and social - The PD (Democratic Party ) - follows the ideology of the center-right - PC (Conservative Party) - advocates family values and nationalism, without chauvinism, - The PRM (Party of Great Romania) - is nationalist extreme right.
Current Political Leaders
President: Traian Basescu (since 2004 - reelected in December 2009)-Democratic Party
Prime Minister: Mihai Razvan UNGUREANU (since 9 February 2012) - PNL
Next Election Dates
Presidential: November-December 2014
 

Indicator of Freedom of the Press

World Rank:
49/179
Evolution:
4 places up compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: May 2012

Copyright 2011 © Crédit Agricole Egypt
CA Egypt website  |  Sitemap  |  Terms and Conditions  |  FAQ  |  Contact us  |  Customer Support 19191
Print
Download in PDF format