Romania Economy 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 imblances. 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.

GDP (purchasing power parity):
$246.7 billion (2007 est.)

GDP (official exchange rate):
$86.84 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.)

Labor force:
9.35 million (2007 est.)

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

Unemployment rate:
4.5% (2007 est.)

Population below poverty line:
25% (2005 est.)

Household income or consumption by percentage share:
lowest 10%: 3.3%
highest 10%: 24.4% (2003)

Distribution of family income - Gini index:
31 (2005)

Inflation rate (consumer prices):
4.6% (2007 est.)

Investment (gross fixed):
26.9% of GDP (2007 est.)

Budget:
revenues: $52.96 billion
expenditures: $56.85 billion (2007 est.)

Public debt:
18.7% of GDP (2007 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:
8% (2007 est.)

Electricity - production:
56.91 billion kWh (2005)

Electricity - consumption:
48.17 billion kWh (2005)

Electricity - exports:
5.224 billion kWh (2005)

Electricity - imports:
2.321 billion kWh (2005)

Oil - production:
122,700 bbl/day (2005 est.)

Oil - consumption:
236,000 bbl/day (2005 est.)

Oil - exports:
92,510 bbl/day (2004)

Oil - imports:
181,100 bbl/day (2004)

Oil - proved reserves:
955.6 million bbl (1 January 2006 est.)

natural gas - production:
11.22 billion cu m (2005 est.)

natural gas - consumption:
17.46 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
6.234 billion cu m (2005)

natural gas - proved reserves:
96.41 billion cu m (1 January 2006 est.)

Current account balance:
-$20.95 billion (2007 est.)

Exports:
$39.62 billion f.o.b. (2007 est.)

Exports - commodities:
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:
$63.16 billion f.o.b. (2007 est.)

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

Economic aid - recipient:
$914.3 million (2004)

Reserves of foreign exchange and gold:
$37.06 billion (31 December 2007 est.)

Debt - external:
$85.86 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$40.69 billion (2006 est.)

Stock of direct foreign investment - abroad:
$278 million (2006 est.)

Market value of publicly traded shares:
$32.78 billion (2006)

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 - 2.45 (2007), 2.809 (2006), 3 (2005), 3 (2004), 3 (2003)