Romania's economy

from Wikipedia, the free encyclopedia
Romania
Flag of Romania.svg
World economic rank 41st (nominal) (2017)
currency Romanian Leu (RON)
Conversion rate 1 RON = EUR 0.2245
Trade
organizations 		EU , WTO , OECD
Key figures
Gross domestic
product (GDP) 		$ 243.698 billion (nominal) (2019)
$ 576.946 billion ( PPP ) (2019)
GDP per capita $ 12,482 (
Nominal ) (2019) $ 29,555 (PPP) (2019)
GDP by economic sector Agriculture : 6.7% (2010)
Industry : 39.7% (2010)
Services : 53.6% (2010)
growth   + 4.1% (2019)
inflation rate 1.1% (2017)
Employed 9.924 million (2009)
Employed persons by economic sector Agriculture : 2.1% (2008)
Industry : 40.9% (2008)
Services : 57.0% (2008)
Activity rate 46.2% (real)
Unemployed 0.709 million (2009)
Unemployment rate 4.5% (May 2018)
Foreign trade
export € 56.03 billion (2017)
Export goods Machines, automobiles, textile goods
Export partner Germany : 18.8% (2009)
Italy : 15.3% (2009)
France : 8.3% (2009)
import € 66.46 billion (2017)
Import goods Machinery, Chemical Products, Mineral Products
Import partner Germany : 17.3% (2009)
Italy : 11.7% (2009)
Hungary : 8.4% (2009)
Foreign trade balance € −9.78 billion (2009)
public finances
Public debt 23.9% of GDP (2009)
Government revenue 30.5% of GDP (2017)
Government spending 33.4% of GDP (2017)
Budget balance 2.9% of GDP (2017)

According to estimates by the International Monetary Fund, Romania's economy achieved a nominal gross domestic product (GDP) of 243.6 billion US dollars in 2019 , which corresponds to around 12,482 US dollars or 11,500 euros per capita. The World Bank classifies Romania as an upper-income country. Since the country's economic opening, Romania has been one of the fastest growing economies in Europe. Between 1990 and 2017, the gross domestic product adjusted for purchasing power increased fivefold per capita.

In the Global Competitiveness Index , which measures a country's competitiveness, Romania was ranked 52nd out of 140 countries (as of 2018). In 2018, the country was ranked 37th out of 180 countries in the index for economic freedom .

Economic structure

In the traditionally dominating branches of industry mechanical engineering , metallurgy , chemistry , oil industry and petrochemistry , a structural change has been taking place for several years . Romania's industry is now clearly on the way to more technically sophisticated products. In terms of the number of employees (350,000), the most important sector of the textile and clothing industry, which generates around a quarter of Romanian exports, is in the process of breaking away from the low-wage segment in view of increasing competition on international markets ( China , India , Vietnam ) to penetrate more demanding textile sectors. In the field of mechanical engineering, the areas of equipment and systems, shipbuilding and motor vehicles are competitive and have a promising future. The motor vehicle and motor vehicle supply industry in particular is now the focus for the development of the modern industrial landscape. The area of ​​IT technologies and software is developing particularly successfully due to the availability of highly qualified Romanian specialists . There was a real boom in the years 2006–2008 in the construction and building materials industry, whose growth rates were well above general economic growth - a development that can be explained by the increasing prosperity of the broader population despite the overall decline in population. The importance of Romania as a location for automotive suppliers is increasing. The environmental sector (removal of contaminated sites), the technology sector, especially the IT sector, telecommunications and the energy sector are likely to develop particularly dynamically .

Romanian National Bank in Bucharest ( Banca Națională a României )

Industrial goods such as textiles, leather, wood, agricultural products, fertilizers, mechanical and electrotechnical devices and machines hold the largest share of exports. In agriculture, sunflowers, wheat, flax, soybeans, rice, wine ( see: Viticulture in Romania ) and fruit are grown.

The sturgeon catch on the Black Sea coast is used to produce caviar .

Romania is rich in natural resources. In addition to crude oil - the processing of which is one of the most important branches of industry - it has natural gas, hard coal , iron ores, bauxite , gold , silver and uranium . The most important waterway in Romania is the Danube , with the ports of Brăila , Galați and Giurgiu . Constanța is the most important seaport in Romania.

tourism

The tourism plays a major role in Romania. In 2015 tourism generated 8.3 billion dollars, 3.4% more than in 2014. The number of guests was 17.6 million (9.3 million of them from abroad), which corresponds to an increase of 15.5%. The number of tourists has increased continuously since the beginning of the 21st century. Most of the foreign tourists in 2015 came from Moldova , Hungary , Bulgaria , Ukraine and Germany .

The start of construction for the first of two major tourist projects was planned for autumn 2004. After a fossil discovery, a dinosaur park was established in Hunedoara County . The start of construction of the second major project - the theme park Dracula Park near Sighișoara ( Schäßburg ) - was prevented by a citizens' initiative and should then be built near Bucharest. However, the project failed because the government could not find investors for the project.

traffic

Romania is an important transit country between Central and Eastern Europe . Due to the high volume of foreign traffic, a motorway toll of € 5 is planned for 2008, which has already caused heated discussions. In Romania, a vignette has been required for cars and trucks on all roads since January 2005. The vignettes ( Rovinietă ) are available at the border crossings and most OMV , Rompetrol and Petrom petrol stations . When you leave the country, a check is carried out at the border to ensure that the Rovinietă and the appropriate proof of purchase are available and valid. The price of the vignette is no longer based on the emissions classification of the vehicle.

Industry

Former Dacia logo

Industry and most of the service companies are mainly concentrated in the greater Bucharest area . The country's industry contributed around 33.2% of GDP in 2014 and employed around 28.9% of all workers, while the service sector contributed the largest share of GDP at 64.4% and employed the most workers at 42.8%.

The most important branches of the manufacturing industry in Romania in terms of their turnover are the food and metalworking industries, as well as printing and publishing, mechanical engineering and the production of electronic items and machines (especially diesel engines for ships and locomotives). The iron industry, shipbuilding, brewing, the textile and clothing industry, the production of cement and the manufacture of chemical products and pharmaceuticals are also important. In addition, ceramic objects, porcelain, stoves, bicycles and paper are made. Economic development is heavily dependent on exports and thus on the global economy. The dominant sector was light industry ; household appliances, toys, electronics and textiles were exported.

Stock exchange

Businesses turn to capital markets to raise funds to finance factory and office buildings, etc., conduct research and development, and a variety of other important activities. A large part of the money comes from important institutions such as pension funds, insurance companies, banks, foundations, colleges and universities. It is also increasingly coming from individuals. Today around 52 percent of households own shares, compared to just 32 percent in 1989.

The stock exchange and other capital markets owe their success primarily to the IT industry ( Neuer Markt ), but they are also dependent on tradition and trust. There are thousands of stocks out there, but the stocks of the largest, best known and most traded companies are generally listed on the Bucharest Stock Exchange (BVB). Most of the stocks and shares traded are traded on the Romanian Association of Securities Dealers Automated Quotation System (Rasdaq), an electronic communications network for stock and securities dealers that was acquired by BVB in 2005. An unexpected boom in the stock market combined with easier investment in stocks led to a dramatic increase in public participation in the stock markets in the 1990s. The annual trading volume on the Bucharest Stock Exchange skyrocketed from 40 million shares in 1990 to 900 million shares in 1998.

Economic data

Membership in business associations

  • Free trade agreement with EFTA (signed 10 December 1992) *
  • Association Agreement with the EU (entered into force on February 1, 1995; EU membership since January 1, 2007)
  • Bosphorus communiqué on economic cooperation between eleven countries bordering the Black Sea (signed on June 25, 1992)
  • Black Sea Bank for Trade and Development (since December 1994)
  • Member of WTO (World Trade Organization), World Bank , IMF ( International Monetary Fund )
  • Protocol of 16 (international system of tariff preferences between currently 13 countries)
  • Observer status in the Agriculture Committee of the Organization for Economic Cooperation and Development OECD (since June 28, 2001)
  • The trade agreement has been repealed by an association agreement with the EU, which continues to apply despite the accession treaty

Key figures

  • Gross domestic product (GDP) (2019) : 223.337 billion € ( 1 )
  • Gross domestic product per capita (2019) : 11,500 € ( 1 )
  • Economic growth (2019) : 4.1% ( 2 )
  • Gross monthly income (December 2019) : 1148 € ( 2 )
  • Monthly net income (December 2019) : 702 €
  • Import (2018) : € 82.86 million ( 1 )
  • Export (2018) : € 67.73 million ( 1 )
  • Inflation rate (2018) : 4.7% ( 2 )
  • Unemployment rate (2018) : 3.9% ( 1 )
  • Employment Distribution (2006) ( 2 )
    • Industry : 32.8%
    • Agriculture / forestry: 7.3%
    • Services : 60%
    • Self-employment rate: 8.8%

The key economic indicators of gross domestic product, inflation, budget balance and foreign trade have developed as follows in recent years:

Change in gross domestic product (GDP)
in% compared to the previous year (real)
year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Change in% compared to the previous year 4.2 7.9 6.3 7.3 −6.6 −1.6 2.5 1.1 3.5 3.1 4.0 4.8 7.0 4.1
Source:      
Development of GDP (PPP)
absolute (in billion US $) 		Development of GDP (PPP)
per inhabitant (in thousands of US $)
year 2005 2010 2015 2016 2017 year 2005 2010 2015 2016 2017
GDP in billion US $ 207.3 344.7 427.3 454.1 506.1 GDP per inhabitant (in thousands of US $) 11.689 17.027 21,566 23.050 25,840
Source: World Bank

Economic history

transformation

At the time of the Romanian Revolution in 1989 , the gross domestic product (GDP) was just under 5000 US dollars ( PPP ) per capita. The privatization of the industry began in 1992. Of more than 6,300 state-owned companies, 30% of the shares were transferred to five mutual funds allocated to the citizens. In 1992 every citizen received a voucher for each of the five funds. The remaining 70% of the shares went into a state investment fund (FPS, Fondul Proprietății de Stat) , which was supposed to sell 10% to 15% per year. Other businesses and other properties were sold outright. The proportion of workers employed in the industrial sector fell from around 40% in 1990 to around 25% in 1999. 1995–1996 there was another round of privatization, in which the citizens were again involved. At the end of 2000, Adrian Năstase 's government converted the state fund into the Authority for Privatization and Administration of State Shares (APAPS). After various changes, since 2004 the authority for the utilization of state assets (AVAS, Autoritatea pentru Valorificarea Activelor Statului ) has been responsible for further privatizations.

In 2001 the largest steel mill, Sidex Galati, was sold to the Mittal Steel Company . In July 2004 the Austrian energy supplier OMV bought the majority of shares in the Romanian oil and natural gas group PETROM and took over 60,000 employees. At the end of 2005, the Austrian Erste Bank was awarded a 61.88% stake in the largest Romanian bank, Banca Comercială Română (BCR). The purchase price was 3.75 billion euros.

Inflation and currency conversion

In the 1990s, Romania suffered from high inflation, which peaked in 1993 at 256.1% per year. In September 2003 the value of the euro was over 40,000 lei (ROL), so that on July 1, 2005 a currency changeover took place. 10,000 lei (ROL) were converted into one leu (RON). The rate of the Romanian leu (singular: leu, plural: lei) was 3.28 lei for one euro in May 2007 (32,800 lei / euro before the currency changeover). New banknotes and coins were put into circulation with the same motifs as the corresponding old banknotes. Since January 1, 2007, only the new notes and coins are valid.

EU accession

On February 1, 1993 Romania signed a treaty with the European Union and the Member States, for example to facilitate trade and to initiate political dialogue. On June 22, 1995 Romania applied for EU membership and 14 political parties signed the so-called Snagov Declaration in Romania on June 21, 1995 , with which they declared their support for Romania's EU membership.

Under the leadership of Vasile Puşcaş , Romania negotiated from 2000 to 2004 on the conditions of EU accession. On April 25, 2005 the accession treaty was signed; On January 1, 2007 , Romania joined the European Union. The fight against corruption in Romania is one of the conditions for joining the EU .

Economic reforms and strong economic growth

The Romanian government under Prime Minister Călin Popescu-Tăriceanu introduced on December 29, 2004 a uniform tax rate of 16% on income and corporate profits. That is why Romania is considered one of the most liberal market economies in the world. Romania's GDP doubled in the following four years (2004–2007).

The Romanian Agency for Foreign Relations (ARIS) anticipated investments in Romania of EUR 11.1 billion for 2006. Due to the uniform tax rate of 16 percent, Romania will be an even more attractive investment destination. The projects announced so far alone will bring in 9,875 million euros in the next two years. The automotive industry accounts for the largest share: the French group Montupet intends to invest € 2,120 million, the Italian company Pirelli € 510 million. The German Ruwel AG is investing 800 million euros in a factory for printed circuit boards for the automotive industry in Cluj / Klausenburg. The German company Weidmüller is building a factory for electrical components in the Maramureș district. The Austrian retail chain Billa decided at the end of 2006 to open 25 additional branches in Romania for EUR 5 million each. The armaments company Rheinmetall is interested in joining two Romanian companies.

Romanian low-cost airline Blue Air

Despite the now positive overall economic development (GDP growth since 2001 an average of 6%), the Romanian economy needs further reforms. Economic growth reached 8.3% in 2004 and 8.1% in 2005. The increases come from agriculture , industry and construction . A continued positive development is expected in the construction industry over the next few years . Likewise, the areas of transport in rail, port or general energy projects through international financial institutions and EU programs are on the upswing. Individual sectors such as the communications and information industries are also growing. Insurance, tourism, pharmaceuticals, groceries and wholesalers, machinery and automobiles are also experiencing economic growth.

The indicators suggest that the strong growth will continue beyond 2004, but some experts fear that the economy will overheat. The service sector was 55.8 percent of GDP in 2006, while the industrial sector grew to 44.9 percent in 2006. The agricultural sector accounted for 11.7 percent of GDP in 2002. In contrast, 2004 saw record growth of 22.6 percent in the agricultural sector.

Although the economy is developing and growing well, the foreign trade deficit rose in 2006 to 9.07 billion euros. Imports totaled 53.09 billion euros - exports totaled 45.6 billion euros.

In his inaugural address in 2006 in parliament, Prime Minister Popescu-Tăriceanu named the adoption of the euro by 2012 as his economic policy goal . In view of the high budget deficit, a consistent austerity policy will have to be pursued. Economic policy issues also played a major role in the parliamentary discussions, with no party campaigning to rehabilitate state finances with tax increases.

While the unemployment rate in 2000 was 10.5%, in December 2005 it was only 5.9%. This means that unemployment is quite low in a European comparison, but the wage level is also at the lower end of the range. The state prescribes a statutory minimum wage of 310 euros. The average net wage in April 2008 was 1846 RON , which corresponds to around 780 euros.

In the real estate sector, the expropriations that occurred between 1945 and 1989 have only been partially redressed. In this context, the House Restitution Act No. 10 of February 8, 2001 should be mentioned.

Economic crisis and recovery

From around mid-2008, a financial and banking crisis - it began in the USA in 2007 - spilled over into the real economy in many countries. The bankruptcy of Lehman Brothers in September 2008 made public awareness of the crisis worldwide. In 2009 Romania received a multi-year loan of 20 billion euros from the European Union ( see EC Regulation 332/2002 ), the International Monetary Fund and, to a lesser extent, the World Bank and the European Bank for Reconstruction and Development ; in return, a number of economic policy measures should be passed in the Chamber of Deputies and the Senate . For example, sales tax was increased from 19% to 24% and the income of state-paid employees was cut by 25%. The remittances of the 2 million Romanians living abroad, mostly living in Spain and Italy, fell sharply in 2009 due to the economic crisis in Europe; In 2008 they amounted to almost six billion euros or about 3.5 percent of Romania's GDP. In the crisis year 2009, Romanian GDP shrank by 6.6%; In 2010 it also shrank. In 2013, the Romanian economy grew by 3.5% according to an initial estimate by the National Statistics Office. According to Eurostat data , Romania slipped into a technical recession in the first half of 2014 ; in the third quarter of 2014 it achieved the highest growth figures (1.9%) in the EU (European Union), seasonally adjusted.

In 2017, Romania's economy grew by 6.9%, making it one of the fastest growing economies in the world.

swell

  1. ↑ a b IMF - World Economic Outlook Database, April 2011. Retrieved April 16, 2011
  2. ↑ Exchange rates of the Romanian Leu.Retrieved October 10, 2013
  3. ↑ a b c Data from the International Monetary Fund: World Economic Outlook Database , as of October 2014. Accessed November 26, 2014.
  4. ↑ Eurostat - Gross Value Added in Agriculture.Retrieved April 16, 2011
  5. ↑ Eurostat - Gross Value Added Industry Accessed April 16, 2011
  6. ↑ Eurostat - Gross Value Added Services Accessed on April 16, 2011
  7. ↑ a b c d e f g h i j k l m INSSE - Romania in figures 2010 ( Memento of the original from November 14, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 2.8 MB) Retrieved April 16, 2011  @1@ 2Template: Webachiv / IABot / www.insse.ro
  8. ↑ Eurostat - unemployment rate. Accessed April 16, 2011
  9. ↑ Eurostat - Government debt. Accessed 16 April 2011
  10. ↑ Eurostat - Government Revenue.Retrieved April 16, 2011
  11. ↑ Eurostat - total expenditure. Accessed April 16, 2011
  12. ↑ Eurostat - Government deficit.Retrieved April 16, 2011
  13. ↑ GDP per capita, PPP (current international $) | Data. Retrieved July 6, 2018 (American English).
  14. ↑ reports.weforum.org
  15. ↑ heritage.org
  16. ↑ a b CIA World Factbook: Romania
  17. ↑ Eurostat - Tables, Graphs and Maps Interface (TGM) table. Retrieved July 6, 2018 .
  18. ↑ GDP, PPP (current international $) | Data. Retrieved July 6, 2018 (American English).
  19. ↑ romania-central.com: Romania's Real Sector
  20. ↑ romania-central.com: Figure 3.3: Sectors Relative to GDP 1990 - 2005
  21. ^ Romanian Embassy in Vienna: Privatization
  22. ↑ European Commission Directorate General for Agriculture (DG VI) Working document, Table 1: Main macro-economic indicators, page 14 (PDF; 1.2 MB)
  23. ^ Europe Agreement establishing an association between the European Economic Communities and their Member States (February 1, 1993) CVCE
  24. ↑ Archive link ( Memento of the original from September 29, 2007 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Romania's gross domestic product has doubled in four years  @1@ 2Template: Webachiv / IABot / www.standard.ro
  25. ↑ Tagesschau - Financial crisis in Eastern Europe: EU and IMF support Romania with 20 billion euros from March 25, 2009
  26. ↑ euractiv.de: EU relaxes loan requirements for Romania
  27. ↑ ec.europa.eu: Memorandum of understanding between the European Community and Romania (PDF; 1.0 MB)
  28. ↑ wirtschaftsblatt.at: Romanians abroad skimpy 90 percent ( Memento from September 5, 2016 in the Internet Archive )
  29. ↑ tagesanzeiger.ch: Government in Romania: Anyone who wanted to leave has already left
  30. ↑ Eurostat: GDP volume growth rate - percentage change relative to previous year
  31. ↑ Foreign Office Romania / Economic Development / 2013-2014

Further information and web links