Romania Economy - 2005

Economy - overview:
Romania 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. Despite the global slowdown in 2001-02, strong domestic activity in construction, agriculture, and consumption have kept growth above 4%. An IMF standby agreement, signed in 2001, has been accompanied by slow but palpable gains in privatization, deficit reduction, and the curbing of inflation. The IMF Board approved Romania's completion of the standby agreement in October 2003, the first time Romania has successfully concluded an IMF agreement since the 1989 revolution. In July 2004, the executive board of the IMF approved a 24-month standby agreement for $367 million. The Romanian authorities do not intend to draw on this agreement, however, viewing it simply as a precaution. Meanwhile, recent macroeconomic gains have done little to address Romania's widespread poverty, while corruption and red tape continue to handicap the business environment.

GDP:
purchasing power parity - $171.5 billion (2004 est.)

GDP - real growth rate:
8.1% (2004 est.)

GDP - per capita:
purchasing power parity - $7,700 (2004 est.)

GDP - composition by sector:
agriculture: 13.1%
industry: 33.7%
services: 53.2% (2004 est.)

Labor force:
9.66 million (2004 est.)

Labor force - by occupation:
agriculture 31.6%, industry 30.7%, services 37.7% (2004)

Unemployment rate:
6.3% (2004 est.)

Population below poverty line:
28.9% (2002)

Household income or consumption by percentage share:
lowest 10%: 2.4%
highest 10%: 27.6% (2003)

Distribution of family income - Gini index:
28.8 (2003)

Inflation rate (consumer prices):
9.6% (2004 est.)

Investment (gross fixed):
23.3% of GDP (2004 est.)

Budget:
revenues: $22.1 billion
expenditures: $23.2 billion, including capital expenditures of $2.2 billion (2004 est.)

Public debt:
23.6% of GDP (2004 est.)

Agriculture - products:
wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes; eggs, sheep

Industries:
textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining

Industrial production growth rate:
4% (2004 est.)

Electricity - production:
56.53 billion kWh (2003)

Electricity - consumption:
57.5 billion kWh (2003)

Electricity - exports:
3.046 billion kWh (2003)

Electricity - imports:
962 million kWh (2003)

Oil - production:
128,000 bbl/day (2004 est.)

Oil - consumption:
253,800 bbl/day (2003 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
1.055 billion bbl (1 January 2002)

Natural gas - production:
12.6 billion cu m (2003 est.)

Natural gas - consumption:
18.5 billion cu m (2003 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
5.4 billion cu m (2001 est.)

Natural gas - proved reserves:
111.1 billion cu m (1 January 2002)

Current account balance:
$-3.631 billion (2004 est.)

Exports:
$23.54 billion f.o.b. (2004 est.)

Exports - commodities:
textiles and footwear, metals and metal products, machinery and equipment, minerals and fuels, chemicals, agricultural products

Exports - partners:
Italy 20.9%, Germany 15.4%, France 7.3%, Turkey 7%, UK 6.1%, Austria 5% (2004)

Imports:
$28.43 billion f.o.b. (2004 est.)

Imports - commodities:
machinery and equipment, fuels and minerals, chemicals, textile and products, basic metals, agricultural products

Imports - partners:
Italy 18.3%, Germany 17.9%, France 7.2%, Hungary 6.1%, Russia 5.7%, Austria 5.5%, Turkey 4.3% (2004)

Reserves of foreign exchange and gold:
$16.21 billion (2004)

Debt - external:
$24.59 billion (2004 est.)

Currency (code):
leu (ROL)

Exchange rates:
lei per US dollar - 32,637 (2004), 33,200 (2003), 33,055 (2002), 29,061 (2001), 21,709 (2000)