Romania Overview

The GDP growth rate slackened in 2005 due to floods and the increase of imported products. As a matter of fact, the GDP growth rate was 8.3% in 2004 and 5% in 2005. The IMF forecasts a 5% growth in 2006. This growth goes with inflation continuous decline in the last 9 years : the inflation rate reaching 154.8% in 1997 was driven down at 8.8% in 2005. The trade gap was 10.3 billion euros in 2005 (7.3 billion in 2004). Despite improvements, Romania remains a poor country where market economy is not established already. The outloook of Romania's European Union accession in 2007 promotes the Foreign investments which amounted 10.3 billion US dollars (7.3 billion in 2003).

Agriculture is an important sector in Romania. It employs 40% of the active population and provides 13% of GDP. The main crops are cereals, but yields are minor. Wood is a fast developing industry. Romania is one of the main European oil and gas producers. The manufacturing industry accounts for 30% of GDP. The country suffers from important technological backwardness, especially concerning heavy industry. The government has initiated a privatization policy for energy, steel and metal working companies.

In 2004, 67% of Romania’s exports were sent to the European Union and 65% of imports came from EU. Romania’s top three trade partners are Italy, Germany and France. The country mainly imports hydrocarbons, capital goods, machinery and vehicles.