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Romania - economy report from the IMF

The latest IMF report (2002) on world economic prospects estimates that Romania will post this year a 4.5 per cent economic growth, the highest rate among EU candidate countries.

The report also estimates that inflation in 2002 will be 25.2%, down from 34.5% in 2001, and that it will further decrease to 17.5% in 2003.

November 2005 - Inflation down to 8%

Geography

Romania is in south-east central Europe, north of the Balkan peninsula and bordering the Black Sea. Its northern and eastern neighbours are the Ukraine and the Republic of Moldova, Yugoslavia is to the south-west and Hungary is to  the west. Its Black Sea coast stretches for 234 kilometres.

Population and size

Covering an area of 238,391 square kilometres, some 31% of the country is mountainous and 36% is hills. In 1997 the population numbered 22,600,000.

Romania and the EU

Romania is an associate member of the European Union and it is anticipated that this will eventually lead to full membership. EU programmes are assisting the country in its democratic reforms and in the exchange of know-how and expertise. 

The Romanian economy and the role played by agriculture 

Successive governments have been trying to repair the damage caused by the near-collapse of the national currency. The financial crisis damaged the expansion of the economy begun two years before, so that GDP declined by nearly 7% in 1997. There was little recovery during the following year, but the Government is making efforts to attract inward investment and to carefully monitor economic development.

Romania has signed trade and co-operation agreements with the EU and the European Free Trade Association and has access to loans from the European Bank for Reconstruction and Development. The country's largest trading partners are Germany and Italy, followed by Russia and France. The leu is the Romanian unit of currency (the plural is  'lei'). The labour force is skilled, though wages are relatively low. The farming sector as a whole suffered from lack of investment during the communist era, as economic policies favoured heavy industry. (The Government is now trying to redress this.) Arable land accounts for about 39% of the country's total area and agriculture was one of the first areas to be selected for privatisation. About 373,000 people are employed in the sector. Agricultural and food products account for about 9% of exports. Romania is an important producer of wheat and maize, and grows vegetables, fruit, sugar-beet and vegetable oil seeds; wine-making is still widespread and many farms also breed livestock. 

Other information

English, German and French are used in business circles. Appointments are necessary and punctuality expected. Business cards are widely used. Office hours: 0700-1530 Monday to Friday. Public holidays: National Day (since 1990) 1/12; other legal holidays: 1 and 2/1, Easter Monday and May Day, 25 and 26/12.