Is Romania a rich country?
Romania, which joined the EU 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. Romania's macroeconomic gains have only recently started to spur creation of a middle class and to address Romania's widespread poverty. Corruption and red tape continue to permeate the business environment.
In the aftermath of the global financial crisis, Romania signed a $26 billion emergency assistance package from the IMF, the EU, and other international lenders, but GDP contracted until 2011. In March 2011, Romania and the IMF/EU/World Bank signed a 24-month precautionary standby agreement, worth $6.6 billion, to promote fiscal discipline, encourage progress on structural reforms, and strengthen financial sector stability; no funds were drawn. In September 2013, Romanian authorities and the IMF/EU agreed to a follow-on standby agreement, worth $5.4 billion, to continue with reforms. This agreement expired in September 2015, and no funds were drawn. Progress on structural reforms has been uneven, and the economy still is vulnerable to external shocks.
Economic growth rebounded in the 2013-17 period, driven by strong industrial exports, excellent agricultural harvests, and, more recently, expansionary fiscal policies in 2016-2017 that nearly quadrupled Bucharest’s annual fiscal deficit, from +0.8% of GDP in 2015 to -3% of GDP in 2016 and an estimated -3.4% in 2017. Industry outperformed other sectors of the economy in 2017. Exports remained an engine of economic growth, led by trade with the EU, which accounts for roughly 70% of Romania trade. Domestic demand was the major driver, due to tax cuts and large wage increases that began last year and are set to continue in 2018.
An aging population, emigration of skilled labor, significant tax evasion, insufficient health care, and an aggressive loosening of the fiscal package compromise Romania’s long-term growth and economic stability and are the economy's top vulnerabilities.
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%|
|Labor Force By Occupation- agriculture||29%|
|Labor Force By Occupation- industry||28.6%|
|Labor Force By Occupation- services||42.4%|
|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%|