Romania Economy 1997

Economy - overview Romania, one of the poorer countries in Central and Eastern Europe,began the transition from Communism with a largely obsolete industrial baseand a pattern of output unsuited to the country's needs. Over the past sevenyears, economic restructuring has lagged behind most other countries in theregion. Consequently, economic performance is declining, with slowing GDPgrowth, ballooning budget deficits, accelerating inflation, a plunging exchangerate, and anemic foreign investment. Unemployment was low at about 6% at theend of 1996, but the rate will rise when restructuring gets underway. A newgovernment elected in November 1996 promises to accelerate economic reform,restructuring, and privatization, introduce fiscal and monetary austerity,reduce the state's role in the economy, and open Romania to foreign investment.The government will tackle its formidable economic problems in two stages,with an emergency plan over the winter of 1996/97 to ensure social and politicalstability, followed by a radical structural reform program over its remainingthree-and-one-half years aimed eventually at EU accession. At the same time,it wants to keep campaign promises to increase benefits to disadvantaged groups.Bucharest hopes to receive financial and technical assistance from internationalfinancial institutions and western governments and negotiations over a newIMF standby agreement are underway. If reform stalls, however, Romania's bondrating - just below investment grade - could fall and needed capital fromboth public and private sources could quickly dry up. Rich agricultural andoil resources are strengths for the future.

GDP purchasing power parity - $113.2 billion (1996 est.)

GDP - real growth rate 4.1% (1996 est.)

GDP - per capita purchasing power parity - $5,200 (1996 est.)

GDP - composition by sector
agriculture: 20%
industry: 33.4%
services: 46.6% (1995)

Inflation rate - consumer price index 56.9% (1996 est.)

Labor force
total : 10.1 million (1996 est.)
by occupation: industry 28.8%, agriculture 36.4%, other 34.8% (1994)

Unemployment rate 6.1% (1996 est.)

Budget
revenues: $6 billion
expenditures: $7.3 billion, including capital expenditures of $NA (1996 est.)

Industries mining, timber, construction materials, metallurgy, chemicals, machinebuilding, food processing, petroleum production and refining

Industrial production growth rate 7% (1996 est.)

Electricity - capacity 22.06 million kW (1994)

Electricity - production 52.48 billion kWh (1994)

Electricity - consumption per capita 2,245 kWh (1995 est.)

Agriculture - products wheat, corn, sugar beets, sunflower seed, potatoes, grapes; milk, eggs,meat

Exports
total value: $7.7 billion (f.o.b., 1996 est.)
commodities: textiles and footwear 25.2%, metals and metal products 19.4%, fuelsand mineral products 10.0%, chemicals 9.4%, other 36.0% (1995)
partners : Germany 17.8%, Italy 15.6%, France 5.7%, Turkey 4.5%, Netherlands 3.0%,China 3.0% (1995)

Imports
total value : $93.8 billion (f.o.b., 1996 est.)
commodities: fuels and minerals 25.1%, machinery and transport equipment 19.4%, foodand agricultural goods 6.1%, chemicals 9.0%, other 40.4% (1995)
partners: Germany 17.1%, Italy 13.2%, Russia 12.6%, France 5.2%, US 4.2%, Egypt4.1% (1995)

Debt - external $7.8 billion (1996 est.)

Economic aid
recipient: ODA, $81 million (1993)

Currency 1 leu (L) = 100 bani

Exchange rates lei (L) per US$1 - 5,970 (January 1997), 3,085.39 (1996), 2,033.28 (1995),1,655.09 (1994), 760.05 (1993), 307.95 (1992)

Fiscal year calendar year

NOTE: The information regarding Romania on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Romania Economy 1997 information contained here. All suggestions for corrections of any errors about Romania Economy 1997 should be addressed to the CIA.