Romania Economy
Is Romania a wealthy country?
Overview of the Romanian economy:
Market Economy: Romania has a developing market economy. Since the fall of communism in 1989, the country has undergone significant economic reforms to transition from a centrally planned economy to a market-based one.
Diverse Sectoral Composition: The Romanian economy is diversified, with key sectors including services, industry, agriculture, and construction. Services contribute the most to the GDP, followed by industry and agriculture.
Industry: Romania has a strong industrial base, with sectors like automotive, machinery, IT, and textiles playing significant roles. The automotive industry, in particular, has been a major driver of exports and foreign direct investment.
Agriculture: Agriculture is an important sector, especially in rural areas. Romania has fertile land and favorable climatic conditions for agriculture. Key products include cereals, vegetables, fruits, and livestock.
Exports: Romania has a relatively open economy that focuses on exports. Key export products include machinery, equipment, vehicles, electronics, textiles, and agricultural products. Other EU countries, especially Germany, Italy, and France, are the country's main trading partners.
Foreign Direct Investment (FDI): Foreign investment has played a significant role in Romania's economic development since the 1990s. FDI inflows are attracted by factors such as a skilled workforce, competitive labor costs, strategic location, and EU membership.
Challenges: Despite progress, Romania faces several economic challenges. These include corruption, an inefficient public sector, bureaucracy, infrastructure deficits, emigration of skilled workers, regional disparities, and a high level of informal economic activities.
European Union Membership: Romania joined the European Union (EU) in 2007, which has brought both benefits and challenges. EU membership has provided access to funding, trade opportunities, and support for reforms. However, it has also required compliance with EU regulations and standards.
COVID-19 Pandemic: Like many countries, Romania's economy has been impacted by the COVID-19 pandemic. Measures such as lockdowns, travel restrictions, and social distancing have affected various sectors, including tourism, retail, and hospitality.
Government Policies: The Romanian government has implemented various economic policies to stimulate growth, attract investment, improve infrastructure, and address structural issues. However, there is ongoing debate about the effectiveness of these policies and the pace of reforms.
Romania Economy Data
What is the GDP of Romania?
| Currency Name and Code | Leu (RON) |
| GDP - Gross Domestic Product (PPP) | $556,070,000,000 (USD) |
| GDP - official exchange rate | $174,900,000,000 (USD) |
| GDP - real growth rate | 3.4% |
| GDP Per Capita | $20,600.00 (USD) |
| GDP by Sector- agriculture | 11.8% |
| GDP by Sector- Industry | 36.1% |
| GDP by Sector- services | 52.1% |
| GDP - composition, by end use |
household consumption: 68.5% government consumption: 7.4% investment in fixed capital: 22.2% investment in inventories: 1.1% exports of goods and services: 43% imports of goods and services: -42.2% |
| Population Below Poverty Line | 25% |
| Inflation Rate | 6% |
| Labor Force | 9,350,000 |
| Labor Force By Occupation- agriculture | 29% |
| Labor Force By Occupation- industry | 28.6% |
| Labor Force By Occupation- services | 42.4% |
| Unemployment Rate | 8.2% |
| Fiscal Year | calendar year |
| Annual Budget | $50,890,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -2.5% |
| Public Debt (% of GDP) | 21.2% |
| Taxes and other revenues - percent of GDP | 31.8% |
| Major Industries | textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining |
| Industrial Growth Rate | 1.5% |
| Agriculture Products | wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes; eggs, sheep |
| Exchange Rate per US Dollar | lei (RON) |
| Child Labor - % of children ages 5-14 | 1% |
| Child Labor - # of children ages 5-14 | 26,658 |
| Commercial Bank Prime Lending Rate | 11.49% |