Romania Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

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.

Real GDP (purchasing power parity)

$556.07 billion (2020 est.)

$578.39 billion (2019 est.)

$555.47 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

4.2% (2019 est.)

4.54% (2018 est.)

7.11% (2017 est.)

Real GDP per capita

$28,800 (2020 est.)

$29,900 (2019 est.)

$28,500 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$249.543 billion (2019 est.)

Inflation rate (consumer prices)

3.8% (2019 est.)

4.6% (2018 est.)

1.3% (2017 est.)

Credit ratings

Fitch rating: BBB- (2011)

Moody's rating: Baa3 (2006)

Standard & Poors rating: BBB- (2014)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 4.2% (2017 est.)

industry: 33.2% (2017 est.)

services: 62.6% (2017 est.)

GDP - composition, by end use

household consumption: 70% (2017 est.)

government consumption: 7.7% (2017 est.)

investment in fixed capital: 22.6% (2017 est.)

investment in inventories: 1.9% (2017 est.)

exports of goods and services: 41.4% (2017 est.)

imports of goods and services: -43.6% (2017 est.)

Agricultural products

maize, wheat, milk, sunflower seed, potatoes, barley, grapes, sugar beet, rapeseed, plums/sloes

Industries

electric machinery and equipment, auto assembly, textiles and footwear, light machinery, metallurgy, chemicals, food processing, petroleum refining, mining, timber, construction materials

Industrial production growth rate

5.5% (2017 est.)

Labor force

4.889 million (2020 est.)

Labor force - by occupation

agriculture: 28.3%

industry: 28.9%

services: 42.8% (2014)

Unemployment rate

3.06% (2019 est.)

3.56% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 21%

male: 20.9%

female: 21.2% (2021 est.)

Population below poverty line

23.8% (2018 est.)

Gini Index coefficient - distribution of family income

36 (2017 est.)

28.2 (2010)

Household income or consumption by percentage share

lowest 10%: 15.3%

highest 10%: 7.6% (2014 est.)

Budget

revenues: 62.14 billion (2017 est.)

expenditures: 68.13 billion (2017 est.)

Budget surplus (+) or deficit (-)

-2.8% (of GDP) (2017 est.)

Public debt

36.8% of GDP (2017 est.)

38.8% of GDP (2016 est.)

note: defined by the EU's Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and loans; general government sector comprises the subsectors: central government, state government, local government, and social security funds

Taxes and other revenues

29.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$11.389 billion (2019 est.)

-$10.78 billion (2018 est.)

Exports

$93.01 billion (2020 est.) note: data are in current year dollars

$100.9 billion (2019 est.) note: data are in current year dollars

$101.11 billion (2018 est.) note: data are in current year dollars

Exports - partners

Germany 22%, Italy 10%, France 7% (2019)

Exports - commodities

cars and vehicle parts, insulated wiring, refined petroleum, electrical control boards, seats (2019)

Imports

$104.16 billion (2020 est.) note: data are in current year dollars

$111.18 billion (2019 est.) note: data are in current year dollars

$109.26 billion (2018 est.) note: data are in current year dollars

Imports - partners

Germany 19%, Italy 9%, Hungary 7%, Poland 6%, China 5%, France 5% (2019)

Imports - commodities

cars and vehicle parts, crude petroleum, packaged medicines, insulated wiring, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$44.43 billion (31 December 2017 est.)

$40 billion (31 December 2016 est.)

Debt - external

$117.829 billion (2019 est.)

$115.803 billion (2018 est.)

Exchange rates

lei (RON) per US dollar -

4.02835 (2020 est.)

4.31655 (2019 est.)

4.0782 (2018 est.)

4.0057 (2014 est.)

3.3492 (2013 est.)

NOTE: The information regarding Romania on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Romania 2022 information contained here. All suggestions for corrections of any errors about Romania 2022 should be addressed to the CIA or the source cited on each page.