The top 10 exports of Romania are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics. Imports of goods and services increased 9.3%, while exports grew 7.6% in 2016, as compared to 2015.[49] Exports of goods and services were expected to grow by 5.6% in 2017, while imports were seen increasing by 8.5%, according to the latest CNP (National Prognosis Commission) projections.[50]
The industry in Romania generated 33.6% of the local gross domestic product (GDP) in the first half of 2018.[51]
History
Before World War II
The economy of Romania entered modernity with the Treaty of Adrianople in 1829, ending centuries of Turkish control. Economic growth was stimulated by several milestones: the discovery and industrial exploitation of oil in 1857, the political union between Wallachia and Moldavia in 1859, land reforms, adoption of a local currency, the leu (1867), the state independence (1877), as well as the building of an extensive rail-road system under king Carol I.
After the dissolution of neighbouring Russian and Austro-Hungarian empires following World War I, several Romanian-speaking provinces (Transylvania, Bessarabia, Banat, Bukovina) united with the Kingdom of Romania, forming the Romanian state in its modern form. The application of radical agricultural reforms and the passing of a new constitution created a democratic framework and allowed for quick economic growth (industrial production doubled between 1923 and 1938, despite the effects of the Great Depression in Romania).
Until World War II, Romania was Europe's second-largest oil and food producer.[52]
After 1945, Soviet-occupied Romania became a member of the Eastern Bloc and switched to a Soviet-stylecommand economy. During this period the country experienced rapid industrialisation in an attempt to create a "multilaterally developed socialist society". Economic growth was further fuelled by foreign credits in the 1970s, eventually leading to a growing foreign debt, which peaked at $11–12 billion.[53]
Romania's debt was completely paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion.[54] Around 58% of the country's gross national income came from industry, and another 15% came from agriculture.[54] The minimum wage was 2,000 lei, or approx. $57.[54]
Free market transition
The end of the communist period marked the beginning of a sharp economic downturn. Romania's weight in the global economy dropped to 0.3% in 1993, down from 0.8% in 1983.
Privatisation of industry started with the 1992 transfer of 30% of the shares of some 6,000 state-owned enterprises to five private ownership funds, in which each adult citizen received certificates of ownership. The remaining 70% ownership of the enterprises was transferred to a state ownership fund, with a mandate to sell off its shares at the rate of at least 10% per year. The privatisation law also called for direct sale of some 30 specially selected enterprises and the sale of "assets" (i.e., commercially viable component units) of larger enterprises.
As of 2008, inflation stood at 7.8%, up from 4.8% in 2007[44] estimated by the BNR at coming within 6% for the year 2006 (the year-on-year CPI, published in March 2007, is 3.66%). Also, since 2001, the economy has grown steadily at around 6–8%. Therefore, the PPP per capita GDP of Romania in 2008 was estimated to be between $12,200[55] and $14,064.[56]
Romania was the largest U.S. trading partner in Central-Eastern Europe until Nicolae Ceaușescu's 1988 renunciation of Most Favored Nation (non-discriminatory) trading status, which resulted in higher U.S. tariffs on Romanian products. Congress approved restoration of the MFN status effective 8 November 1993, as part of a new bilateral trade agreement. Tariffs on most Romanian products dropped to zero in February 1994 with the inclusion of Romania in the Generalized System of Preferences (GSP). Major Romanian exports to the U.S. include shoes and clothing, steel, and chemicals.
Romania signed an Association Agreement with the EU in 1992 and a free trade agreement with the European Free Trade Association (EFTA) in 1993, codifying Romania's access to European markets and creating the basic framework for further economic integration. Romania formally joined the EU in 2007.
During the later part of the Ceauşescu period, Romania had earned significant contracts from several developing countries, notably Iraq, for oil-related projects. In August 2005 Romania agreed to forgive 43% of the US$1.7billion debt owed by an Iraq still largely occupied by the military forces of the U.S.-led "Coalition of the Willing", making Romania the first country outside of the Paris Club of wealthy creditor nations to forgive Iraqi debts.[57]
Growth in 2000–07 was supported by exports to the EU, primarily to Italy and Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 2% of GDP are beginning to decline[citation needed] as demand for Romanian products in the European Union increases. Accession to the EU gives further impetus and direction to structural reform.
In early 2004 the government passed increases in the value-added tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatisation of the state-owned bank Banca Comercială Română took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds is expected to accelerate economic growth. However, the Romanian economy was affected by the financial crisis of 2007–08 and contracted in 2009.[58]
After communism, Romania needed capital infusion, entrepreneurial and managerial skills, the fastest way to obtain that was through foreign direct investment (FDI).[59] As of 2018, total FDI in Romania was 81billion EUR, 63% of total (51billion) are greenfield investments. Top ten FDI stock by country of origin in 2018 were: Netherlands (23.9%), Germany (12.7%), Austria (12.2%), Italy (9.5%), Cyprus (6.2%), France (6%), Switzerland (4.5%), Luxembourg (4.2%), Belgium (2.2%) and United Kingdom (2.1%).[60]
Investments in Romania
The level of investment remains above EU average. Investment accounts for almost 25% of GDP in Romania as opposed to 19% of GDP in the EU, in 2016.[61]
Locally, UniCredit, one of the region's leading banking firms, announced in October 2023 that it will merge its Romanian affiliate with the recently purchased Alpha bank in Romania (for €300 million), creating Romania's third-largest lender.[62]
Romania's Recovery and Resilience Plan dedicates over €6 billion to digitalisation efforts, encompassing public administration, connectivity, cybersecurity, digital skills, and the development of an integrated e-health and telemedicine system.[63] The European Investment Bank Project Advisory Support programme aids Romania in advancing digitalisation through collaborations with the National Agency for Public Procurement and the Ministry of Research, Innovation, and Digitalisation[64][65]
This assistance includes evaluating ICT projects and supporting the rollout of a €600 million government cloud initiative, aimed at enhancing interoperability, reducing bureaucracy, and bolstering cybersecurity.[64]
On 1 January 2007 Romania and Bulgaria entered the EU, giving the Union access to the Black Sea. This led to some immediate international trade liberalisation. Romania is part of the European single market which represents more than 447 million consumers. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation. This is to be contrasted with enormous current account deficits. Low interest rates guarantee availability of funds for investment and consumption. For example, a boom in the real estate market started around 2000 and has not subsided yet. At the same time annual inflation in the economy is variable and during the mid-2000s (2003–2008) has seen a low of 2.3% and high of 7.8%.
Romania adopted 1 January 2005 a flat tax of 16% to improve tax collection rates. Romania subsequently enjoyed the lowest fiscal burden in the European Union, until Bulgaria also switched to a flat tax of 10% in 2007. Since 2018 the flat rate was lowered to 10%.
Romania posted 6% economic growth in 2016, the highest among European Union member states. According to Bloomberg, the country's economic growth advanced at the fastest pace since 2008.[66] It is now considered the next tech-startup hub country in EU. Nowadays, that Romania's digital infrastructure ranks higher than other eastern and central European countries makes it an attractive place to start a tech business.[67]
Economy
GDP
IMF for 2022 (October) published the following data:[68]
Year
2022
2023
2024
2025
2026
2027
$/per capita (PPP)
38
40,673
43,100
45,445
47,940
50,573
$/per capita (Nominal)
15
16,228
17,566
18,935
20,263
21,665
In the Romanian press the economy has been referred to as the "Tiger of the East" during the 2000s.[69] Romania is a country of considerable economic potential: over 10 million hectares of agricultural land, diverse energy sources (coal, oil, natural gas, hydro, nuclear, and wind), a substantial, if aging, manufacturing base and opportunities for expanded development in tourism on the Black Sea and in the mountains.
Investments
Net investments in Romania's economy totaled RON 33.6 billion (EUR 7.2 billion) in the first half of 2018, up by 5.8% compared to the same period of 2017, according to the National Statistics Institute (INS).[70]
In the same year (2018) foreign direct investment (FDI) was 81 billion, 63% (51 billion) being "green field"
Data
The following table shows the main economic indicators in 1980–2022 (with IMF staff estimates in 2023–2028). Inflation under 5% is in green.[71]
Year
GDP (in Bil. US$ PPP)
GDP per capita (in US$ PPP)
GDP (in Bil. Bil. US$nominal)
GDP per capita (in US$ nominal)
GDP growth (real)
Inflation rate (in Percent)
Unemployment (in Percent)
Government debt (in% of GDP)
1980
114.1
5,087
46.1
2,052
3.3%
1.5%
—
—
1981
125.1
5,541
55.3
2,450
0.1%
2.2%
—
—
1982
138.0
6,084
55.4
2,441
3.9%
16.9%
—
—
1983
152.0
6,674
48.4
2,125
6.0%
4.7%
—
—
1984
167.0
7,300
39.1
1,710
6.0%
−0.3%
—
—
1985
172.0
7,490
48.3
2,101
−0.1%
−0.2%
4.0%
—
1986
179.7
7,783
52.3
2,264
2.4%
0.7%
3.9%
—
1987
185.7
7,994
58.5
2,517
0.8%
1.1%
3.7%
—
1988
191.2
8,191
60.5
2,593
−0.5%
2.6%
3.7%
—
1989
187.2
7,990
54.2
2,314
−5.8%
0.9%
3.4%
—
1990
183.3
7,814
38.5
1,641
−5.6%
127.9%
3.4%
—
1991
165.0
7,045
29.1
1,241
−12.9%
161.1%
3.5%
—
1992
154.0
6,599
19.8
847
−8.8%
210.4%
5.4%
—
1993
160.0
6,896
26.6
1,147
1.5%
256.1%
9.2%
—
1994
169.9
7,365
30.4
1,317
3.9%
136.7%
11.0%
—
1995
185.8
8,105
35.8
1,563
7.1%
32.3%
9.9%
—
1996
196.7
8,627
35.7
1,565
3.9%
38.8%
7.3%
—
1997
188.0
8,289
35.6
1,571
−6.1%
154.8%
7.9%
—
1998
180.9
8,018
42.6
1,885
−4.8%
59.1%
9.6%
—
1999
181.4
8,076
36.0
1,600
−1.2%
45.8%
7.2%
—
2000
190.9
8,501
37.4
1,667
2.9%
45.7%
7.6%
29.5%
2001
205.1
9,145
40.4
1,800
5.1%
34.5%
7.4%
27.4%
2002
220.2
10,083
46.0
2,108
5.7%
22.5%
8.3%
27.3%
2003
229.7
10,620
57.8
2,672
2.3%
15.4%
7.8%
24.9%
2004
260.1
12,091
75.1
3,487
10.3%
11.9%
8.0%
21.3%
2005
280.1
13,140
98.5
4,608
4.7%
9.0%
7.1%
17.8%
2006
312.9
14,718
122.1
5,744
8.0%
6.6%
7.2%
12.7%
2007
344.5
16,301
174.8
8,273
7.2%
4.8%
6.3%
12.4%
2008
384.1
18,613
215.6
10,446
9.4%
7.8%
5.6%
13.0%
2009
365.1
17,861
174.6
8,540
−5.5%
5.6%
8.4%
22.5%
2010
355.0
17,493
170.3
8,391
−3.9%
6.1%
9.0%
30.2%
2011
378.8
18,754
192.8
9,546
4.5%
5.8%
9.1%
32.6%
2012
397.3
19,771
179.2
8,919
1.9%
3.3%
8.7%
36.2%
2013
393.2
19,641
189.8
9,481
0.2%
4.0%
9.0%
39.2%
2014
410.8
20,592
200.0
10,025
4.1%
1.1%
8.6%
40.5%
2015
428.6
21,570
177.9
8,951
3.2%
−0.6%
8.4%
39.4%
2016
470.9
23,831
185.3
9,378
2.9%
−1.6%
7.2%
39.5%
2017
530.8
27,020
210.5
10,717
8.2%
1.3%
6.1%
37.1%
2018
576.3
29,504
243.5
12,465
6.0%
4.6%
5.2%
36.2%
2019
609.2
31,379
251.0
12,928
3.8%
3.8%
4.9%
36.6%
2020
594.4
30,751
251.7
13,021
−3.7%
2.6%
6.1%
49.4%
2021
657.5
34,245
285.6
14,874
5.9%
5.0%
5.6%
51.1%
2022
737.3
38,721
301.8
15,851
4.8%
13.8%
5.6%
48.7%
2023
783.9
41,633
348.9
18,530
2.4%
10.5%
5.6%
48.3%
2024
830.5
44,484
376.7
20,175
3.6%
5.8%
5.4%
49.3%
2025
878.0
47,441
405.2
21,893
3.7%
4.2%
5.3%
50.3%
2026
927.5
50,509
429.7
23,398
3.7%
3.0%
5.2%
51.4%
2027
978.1
53,684
450.9
24,749
3.6%
2.6%
5.1%
52.8%
2028
1,031.9
57,075
469.6
25,974
3.5%
2.5%
5.0%
54.2%
National budget
The planned national budget for 2017 is 422 billion lei ($103 billion), with an estimated budget deficit to GDP of 1.1%.
Growing middle class
Romania has a growing middle and upper classes with relatively high per-capita income. World Bank estimated that in 2002 99% of the urban and 94% of the rural population had access to electricity. In 2004, 91% of the urban and only 16% of the rural population had access to improved water supply and 94% of the urban population had access to improved sanitation.[72] In 2017 there were about 22.5 million mobile phone users in Romania and about 18 million with internet access.
In February 2024, the gross average monthly wage was RON 8,871 (€1910), and the net average monthly wage was RON 5,556 (€1180).
Neighbours
Countries tend to benefit from sharing borders with developed markets as this facilitates trade and development. Below is a table of Romania's neighbouring countries, their GDP per capita, and trade values between the pairs. In 2017, 11.58% of Romanian exports went to its neighbours; while 12.95% of imports came from these five countries. For comparison, Germany alone accounted for 23% of Romania's exports and 20.1% of its imports.[73]
In 2022, the economically active population was of 8270.8 thousand persons, of which 94.4% were employed persons and 5.6% unemployed.[75]
The employment rate of working age population (15-64 years) was 63.1%, having higher values for men (71.5%, as against 54.4% for women) and urban area (68.6% in urban area, as against 56.3% in rural area). 19.7% of young people (aged 15-24 years) and 46.7% of elderly people (aged 55-64 years) were employed. The employment rate for persons aged 15-64 was higher for those with superior level of education (89.5%) than for those with medium level (64.6%) and those with low education (36.6%). The employment rate for the population aged 20-64 years was 68.5%. Employment rate had higher values for men (77.7% as against only 59.1% for women) and for persons in urban area (74.0% as against 61.8% for persons in rural area).[76]
The unemployment rate was 5.6%. By gender, the gap between the two rates was 1.0 percentage point (6.0% for men as against 5.0% for women), while by residential area it was 5.7 percentage points (8.9% for rural area as compared to 3.2% for urban area). The unemployment rate had the highest level (22.8%) among young people (aged 15-24 years). The unemployment affects to a greater extent the graduates of medium and low level of education, for which the unemployment rate was 5.2%, respectively 14.2% higher as compared with the rate registered for unemployed with superior level of education (1.7%).[75]
Note: Counties highlighted in purple on the map had long-term unemployment rates below 3% in March 2023, those in blue fell within the range of 3% to 5%, counties in orange fell within the range of 5% to 7%, and counties in red had unemployment rates of 7% and above.[77]
According to the latest monthly report of the National Institute of Statistics in Romania, the average monthly salary in November 2023 was 7,766 lei (1,562 euros) gross or 4,765 lei (958 euros) net.[78]
Note: Counties highlighted in purple on the map had an average net monthly salary (after tax) of €900 and above in November 2023, those in blue fell within the range of €899 to €750, and counties in orange had average net monthly salaries below €750.[79]
Minimum wage in Romania
The minimum gross wage in the Romanian economy amounts to RON 3700 (≈EUR 745) from 1 July 2024. The same minimum wage applies to employees with a seniority of over 15 years.[80]
Wealth per adult
In 2021, the median wealth per adult in Romania was estimated by Credit Suisse at USD 20,389. Average wealth per adult was USD 42,351.[81]
35% of the 15.1 million Romanian adults had a wealth of less than USD 10,000. This is an improvement from 40% in 2018.[81]
Romania is a popular tourist destination, with more than 15.7million domestic and foreign tourists in 2018.
Romania's tourism took a great hit during the 2020 COVID-19 pandemic, with a drop of as much as 68.7% of foreign visitors in 2020, but it's beginning to recover in 2022.[82]
Romania has cities of great cultural interest (Sibiu, Bucharest, Constanța, Brașov, Iași, Timișoara, Cluj-Napoca or Alba Iulia), beaches and seaside resorts, ski resorts, and well-preserved rural regions appreciated for their beauty and tranquillity. Romania is the destination of many religious pilgrimages,[citation needed] hosting several thousands visitors each year.
The leu (pronounced [ˈlew]), plural: lei ([ˈlej]); (ISO 4217 code RON; numeric code 946), "leo" (lion) in English is the currency of Romania. It is subdivided into 100 bani (singular: ban). On 1 July 2005, Romania underwent a currency reform, switching from the previous leu (ROL) to a new leu (RON). 1 RON is equal to 10,000 ROL. Romania joined the European Union on 1 January 2007 and initially hoped to adopt the euro in 2014,[83] but with the deepening of the Euro crisis and with its own problems, such as a low workforce productivity, postponed its adoption plans indefinitely.[84]
As of February 2021, 1 RON is worth about 0.2045 EUR and US$0.2483.[85] Romania is expected to adopt the euro in 2026.[86]
Fulfillment of the Maastricht criteria
Romania, as a member state of the European Union, is required to adopt the common European currency, the Euro. For this reason Romania must fulfil the five Maastricht criteria, of which it met none as of June 2020.
Criterion potentially fulfilled: If the budget deficit exceeds the 3% limit, but is "close" to this value (the European Commission has deemed 3.5% to be close by in the past),[97] then the criteria can still potentially be fulfilled if either the deficits in the previous two years are significantly declining towards the 3% limit, or if the excessive deficit is the result of exceptional circumstances which are temporary in nature (i.e. one-off expenditures triggered by a significant economic downturn, or by the implementation of economic reforms that are expected to deliver a significant positive impact on the government's future fiscal budgets). However, even if such "special circumstances" are found to exist, additional criteria must also be met to comply with the fiscal budget criterion.[98][99] Additionally, if the debt-to-GDP ratio exceeds 60% but is "sufficiently diminishing and approaching the reference value at a satisfactory pace" it can be deemed to be in compliance.[99]
Criterion not fulfilled
Notes
↑ The rate of increase of the 12-month average HICP over the prior 12-month average must be no more than 1.5% larger than the unweighted arithmetic average of the similar HICP inflation rates in the 3 EU member states with the lowest HICP inflation. If any of these 3 states have a HICP rate significantly below the similarly averaged HICP rate for the eurozone (which according to ECB practice means more than 2% below), and if this low HICP rate has been primarily caused by exceptional circumstances (i.e. severe wage cuts or a strong recession), then such a state is not included in the calculation of the reference value and is replaced by the EU state with the fourth lowest HICP rate.
↑ The arithmetic average of the annual yield of 10-year government bonds as of the end of the past 12 months must be no more than 2.0% larger than the unweighted arithmetic average of the bond yields in the 3 EU member states with the lowest HICP inflation. If any of these states have bond yields which are significantly larger than the similarly averaged yield for the eurozone (which according to previous ECB reports means more than 2% above) and at the same time does not have complete funding access to financial markets (which is the case for as long as a government receives bailout funds), then such a state is not to be included in the calculation of the reference value.
↑ The change in the annual average exchange rate against the euro.
↑ Reference values from the Convergence Report of June 2024.[95]
1 2 Belgium, Denmark, and the Netherlands were the reference states.[95]
↑ The maximum allowed change in rate is ±2.25% for Denmark.
Romania is an oil and gas producer. The pipeline network in Romania included 2,427km for crude oil, 3,850km for petroleum products, and 3,508km for natural gas in 2006. Several major new pipelines are planned, especially the Nabucco Pipeline for Caspian oilfields, the longest one in the world. Romania could cash in four billion dollars from the Constanta-Trieste pipeline.[100]
Energy needs are also met by importing bituminous and anthracite coal and crude petroleum. In 2019 over 21 million metric tonnes of coal, an estimated 1300 tonnes of zinc, 460,000 tonnes of alumina and 3.4 million tonnes of crude steel were mined. Lesser amounts of copper, lead, gold, silver and kaolin were also mined.[101]
Due to dependency on oil and gas imports from Russia, the country has placed an increasingly heavy emphasis on nuclear energy since the 1980s. The Cernavodă Nuclear Power Plant is the only one of its kind in Romania, although there are plans to build a second one in Transylvania, possibly after 2020.[102]
For domestic heating and cooking 48% of rural and small-town households use directly burned solid fuel (almost exclusively domestically produced wood) as the main energy source.[103]
Wind power had an installed capacity of 76MW in 2008,[104] and 3028 MW in 2016.[105] The country has the largest wind power potential in Southeast Europe, with Dobruja listed as the second-best place in Europe to construct wind farms.[106] As a result, there are currently[when?] investor connection requests for over 12,000 MW.[107] There are also plans to build a number of solar power stations, such as the Covaci Solar Park, which will be one of the largest in the world.[108][109]
The volume of traffic in Romania, especially goods transportation, has increased in recent years due to its strategic location in South-East Europe. In the past few decades, much of the freight traffic shifted from rail to road. A further strong increase of traffic is expected in the future.
As of December 2023, 1,065.9km (662.3mi)[110] of motorways are in use with a small portion of Lugoj-Deva (between Margina and Holdea) to be finished while Sibiu-Pitești is still tendering. The railway network, which was significantly expanded during the Communist years, is the fourth largest in Europe.[111]
Bucharest is the only city in Romania which has an underground railway system, comprising both the Bucharest Metro and the light rail system managed by Regia Autonomă de Transport București. Although construction was planned to begin in 1941, due to geo-political factors, the Bucharest Metro was only opened in 1979. Now it is one of the most accessed systems of the Bucharest public transport network with an average ridership of 800,000 passengers during the workweek.[112] In total, the network is 71km long and has 53 stations.[113]
Sectors of the economy
In 2022, the sector with the highest number of companies registered in Romania is Services with 351,621 companies followed by Retail Trade with 239,404 companies.[114]
Gas and natural resources
Romania has become a natural gas exporter.[115] Romanian Scientist, Lazar Edeleanu, had managed, for the first time in the world, to refine oil based products with sulphur dioxide, in other words separation from the oil of some hydrocarbon groups, without their chemical alteration.[116]
Agriculture employs about 26% of the population (one of the highest rates in Europe) and contributes about 4.3% of GDP.[117][118] The Bărăgan is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region.
Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. Romania is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the reforms and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) have resulted in reforms in the agricultural sector of the economy.
There has been a large scale decrease in employment in the fishing industry within Romania due to the EU's Common Fisheries Policy, which places restrictions on the total tonnage of catch that can be landed, caused by overfishing in the Black Sea. Along with the decline of sea-fishing, commercial fish farms – especially in salmon, have increased in prominence in the rivers and lochs of the east of Romania. Inland waters are rich in fresh water fish such as salmon, trout, and in particular, carp which traditionally has been the most popular fish, including its eggs (icre), fresh or canned.
Romania has been successful in developing its industrial sector in recent years. Industry and construction accounted for 32% of gross domestic product (GDP) in 2003, a comparatively large share even without taking into account related services. The sector employed 26.4% of the workforce. Romania excels in the production of automobiles, machine tools, and chemicals. In 2013, some 410,997 automobiles were produced in Romania, up from 78,165 in 2000. As of 2018, the turnover generated by Romania's automobile industry was estimated at 28 billion Euros, with 230,000 Romanians employed in the sector.[119]
In 2004 Romania enjoyed one of the largest world market share in machine tools (5.3%).[citation needed] Romanian-based companies such as Dacia, Petrom, Rompetrol, Bitdefender, Romstal and Mobexpert have expanded operations throughout the region. However, small- to medium-sized manufacturing firms form the bulk of Romania's industrial sector.
Industrial output growth was 6.9% year-on-year in December 2009, making it the highest in the EU-27 zone which averaged −1.9%.[120]
Romania has the third-highest percentage of women working in information and communications technologies (ICT) in Europe. 29% of their workforce is made up of women.[67]
In 2003 the service sector constituted 55% of gross domestic product (GDP), and employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%). The service sector in Romania has expanded in recent years, employing some 47% of Romanians and accounting for slightly more than half of GDP.
The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Cora (hypermarket) (of France) and Carrefour (a French subsidiary), have led to fewer workers in this sector and a migration of retail jobs to the suburbs.
Biotechnology industry
Romania is aggressively promoting and developing its biotechnology industry. Hundred of millions of dollars were invested into the sector to build up infrastructure, fund research and development and to recruit top international scientists to Romania. Romania features one of the world's newest competitive bio-industries, in key areas as pharmacogenomics, protein engineering, glyco-engineering, tissue engineering, bio-informatics, genome medicine and preventive medicine. Romania is devoting substantial resources to developing universities and R&D facilities, increasing bioventure startups, growing bio-clusters (communities of biotechnology companies and institutions) and developing human resources, all with the goal of making it one of the world's most advanced biotechnology regions.[citation needed]
The strength of the Romanian economy varies from region to region. PPP, and GDP per capita is the highest in Bucharest. The following table shows the highest GDP per capita of the other 4 counties, with data supplied by CNP.[121][citation needed]
In 2017, Romania's largest trading partner was Germany, followed by Italy. Romania's main imports and exports are electrical machinery, motor vehicles & parts and industrial machinery.[73] While Romania imports substantial quantities of grain, it is largely self-sufficient in other agricultural products and food stuffs, due to the fact that food must be regulated for sale in the Romania retail market, and hence imports almost no food products from other countries.[123]
Romania imported in 2006 food products of 2.4 billion euros, up almost 20% versus 2005, when the imports were worth slightly more than 2 billion euros. The EU is Romania's main partner in the trade with agri-food products. The exports to this destination represent 64%, and the imports from the EU countries represent 54%. Other important partners are the CEFTA countries, Turkey, Republic of Moldova and the USA.[123] Despite a decline of the arms industry in the post-communist era, Romania is a significant exporter of military equipment, accounting for 3–4% of the world total in 2007. EU members are represented by a single official at the World Trade Organization.
During the first trimester of 2010, Romanian exports increased by 21%, one of the largest rates in the European Union. The trade deficit stood at roughly 2 billion EUR, the eighth largest in the EU.[124] The annual trade deficit has widened every year since 2014, standing at about EUR 18.77B in 2020.[125]
Miscellaneous data
Households with access to fixed and mobile telephone access[126]
The economy of Bulgaria functions on the principles of the free market, having a large private sector and a smaller public one. Bulgaria is a developing, industrialised high-income country according to the World Bank, and is a member of the European Union (EU), the World Trade Organization (WTO), the Organization for Security and Co-operation in Europe (OSCE) and the Organization of the Black Sea Economic Cooperation (BSEC). The Bulgarian economy has experienced significant growth (538%), starting from $13.15 billion and reaching estimated gross domestic product (GDP) of $107 billion or $229 billion, GDP per capita of $36,000, average gross monthly salary of 2,310 leva, and average net monthly salary of $2,191. The national currency is the lev, pegged to the euro at 1.95583 leva for 1 euro. The lev is the strongest and most stable currency in Eastern Europe.
The economy of Croatia is a developed mixed economy. It is one of the largest economies in Southeast Europe by nominal gross domestic product (GDP). It is an open economy with accommodative foreign policy, highly dependent on international trade in Europe. Within Croatia, economic development varies among its counties, with strongest growth in Central Croatia and its financial centre, Zagreb. It has a very high level of human development, low levels of income inequality, and a high quality of life. Croatia's labor market has been perennially inefficient, with inconsistent business standards as well as ineffective corporate and income tax policy.
The economy of the Czech Republic is a developed export-oriented social market economy based in services, manufacturing, and innovation that maintains a high-income welfare state and the European social model. The Czech Republic participates in the European Single Market as a member of the European Union, and is therefore a part of the economy of the European Union. It uses its own currency, the Czech koruna, instead of the euro. It is a member of the Organisation for Economic Co-operation and Development (OECD). The Czech Republic ranks 16th in inequality-adjusted human development and 24th in World Bank Human Capital Index, ahead of countries such as the United States, the United Kingdom or France. It was described by The Guardian as "one of Europe's most flourishing economies".
The economy of Estonia is rated advanced by the World Bank, i.e. with high quality of life and advanced infrastructure relative to less industrialized nations. Estonia is a member of the European Union, eurozone and OECD The economy is heavily influenced by developments in the Finnish and Swedish economies.
The economy of Greece is the 52nd largest in the world, with a nominal gross domestic product (GDP) of $252.732 billion per annum. In terms of purchasing power parity, Greece is the world's 54th largest economy, at $436.757 billion per annum. As of 2023, Greece is the sixteenth largest economy in the European Union and eleventh largest in the eurozone. According to the International Monetary Fund's figures for 2024, Greece's GDP per capita is $24,342 at nominal value and $42,066 at purchasing power parity. Among OECD nations, Greece has a highly efficient and strong social security system; social expenditure stood at roughly 24.1% of GDP.
The economy of Hungary is a developing, high-income mixed economy, ranked as the 9th most complex economy according to the Economic Complexity Index. Hungary is a member of the Organisation for Economic Co-operation and Development (OECD) with a very high human development index and a skilled labour force, with the 22nd lowest income inequality by Gini index in the world. The Hungarian economy is the 53rd-largest economy in the world with $265.037 billion annual output, and ranks 41st in the world in terms of GDP per capita measured by purchasing power parity. Hungary has an export-oriented market economy with a heavy emphasis on foreign trade; thus the country is the 35th largest export economy in the world. The country had more than $100 billion of exports in 2015, with a high trade surplus of $9.003 billion, of which 79% went to the European Union (EU) and 21% was extra-EU trade. Hungary's productive capacity is more than 80% privately owned, with 39.1% overall taxation, which funds the country's welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50% of its total, followed by gross fixed capital formation with 22% and government expenditure with 20%.
The economy of Latvia is an open economy in Europe and is part of the European Single Market. Latvia is a member of the World Trade Organization (WTO) since 1999, a member of the European Union since 2004, a member of the Eurozone since 2014 and a member of the OECD since 2016. Latvia is ranked the 14th in the world by the Ease of Doing Business Index prepared by the World Bank Group. According to the Human Development Report 2023/24 by the United Nations Development Programme, has a HDI score of a 0.879. Due to its geographical location, transit services are highly developed, along with timber and wood processing, agriculture and food products, and manufacturing of machinery and electronic devices.
The economy of North Macedonia has become more liberalized, with an improved business environment, since its independence from Yugoslavia in 1991, which deprived the country of its key protected markets and the large transfer payments from Belgrade. Prior to independence, North Macedonia was Yugoslavia's poorest republic. An absence of infrastructure, United Nations sanctions on its largest market, and a Greek economic embargo hindered economic growth until 1996.
The economy of Moldova is an emerging upper-middle income economy, Moldova is a landlocked Eastern European country, bordered by Ukraine on the East and Romania to the West. It is a former Soviet republic and today a candidate member to the European Union.
The economy of Poland is an emerging and developing, high-income, industrialized, mixed economy that serves as the sixth-largest in the European Union by nominal GDP and fifth-largest by GDP (PPP). Poland boasts the extensive public services characteristic of most developed economies and is one of few countries in Europe to provide no tuition fees for undergraduate and postgraduate education and with universal public healthcare that is free at a point of use. Since 1988, Poland has pursued a policy of economic liberalisation but retained an advanced public welfare system. It ranks 20th worldwide in terms of GDP (PPP), 21st in terms of GDP (nominal), and 21st in the 2023 Economic Complexity Index. Among OECD nations, Poland has a highly efficient and strong social security system; social expenditure stood at roughly 22.7% of GDP.
The economy of Slovakia is based upon Slovakia becoming an EU member state in 2004, and adopting the euro at the beginning of 2009. Its capital, Bratislava, is the largest financial centre in Slovakia. As of Q1 2018, the unemployment rate was 5.72%.
The economy of Slovenia is a developed mixed economy. The country enjoys a high level of prosperity and stability as well as above-average GDP per capita by purchasing power parity at 91% of the EU average in 2023. The nominal GDP in 2023 is 68.108 billion USD, nominal GDP per capita (GDP/pc) in 2023 is USD 32,350. The highest GDP/pc is in central Slovenia, where the capital city Ljubljana is located. It is part of the Western Slovenia statistical region, which has a higher GDP/pc than eastern Slovenia.
The Economy of Switzerland is one of the world's most advanced and a highly-developed free market economy. The economy of Switzerland has ranked first in the world since 2015 on the Global Innovation Index and third in the 2020 Global Competitiveness Report. According to United Nations data for 2016, Switzerland is the third richest landlocked country in the world after Liechtenstein and Luxembourg. Together with the latter and Norway, they are the only three countries in the world with a GDP per capita (nominal) above US$90,000 that are neither island nations nor ministates. Among OECD nations, Switzerland holds the 3rd-largest GDP per capita. Switzerland has a highly efficient and strong social security system; social expenditure stood at roughly 24.1% of GDP.
The economy of Belgium is a highly developed, high-income, mixed economy.
The economy of Austria is a highly developed social market economy, with the country being one of the fourteen richest in the world in terms of GDP per capita. Until the 1980s, many of Austria's largest industry firms were nationalised. In recent years, privatisation has reduced state holdings to a level comparable to other European economies. Among OECD nations, Austria has a highly efficient and strong social security system; social expenditure stood at roughly 29.4% of GDP.
The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the second largest economy in the world in nominal terms, after the United States, and the third largest at purchasing power parity (PPP), after China and the US. The European Union's GDP is estimated to be $19.40 trillion (nominal) in 2024 or $28.04 trillion (PPP), representing around one-sixth of the global economy. Germany has the biggest national GDP of all EU countries, followed by France and Italy. In 2022, the social welfare expenditure of the European Union (EU) as a whole was 27.2% of its GDP.
The euro convergence criteria are the criteria European Union member states are required to meet to enter the third stage of the Economic and Monetary Union (EMU) and adopt the euro as their currency. The four main criteria, which actually comprise five criteria as the "fiscal criterion" consists of both a "debt criterion" and a "deficit criterion", are based on Article 140 of the Treaty on the Functioning of the European Union.
While the Hungarian government has been planning since 2003 to replace the Hungarian forint with the euro, the government has not set a target date and the forint is not part of the European Exchange Rate Mechanism. In 2023, György Matolcsy, governor of the Hungarian National Bank and former Minister of the National Economy stated that adoption of the Euro by Hungary could take place "perhaps around 2030 or a bit later", calling it "club of the rich" and saying that at that time, in Hungary, "the economy is unprepared for it".
Romania's national currency is the leu. After Romania joined the European Union (EU) in 2007, the country became required to replace the leu with the euro once it meets all four euro convergence criteria, as stated in article 140 of the Treaty on the Functioning of the European Union. As of 2023, the only currency on the market is the leu and the euro is not yet used in shops. The Romanian leu is not part of the European Exchange Rate Mechanism, although Romanian authorities are working to prepare the changeover to the euro. To achieve the currency changeover, Romania must undergo at least two years of stability within the limits of the convergence criteria.
The enlargement of the eurozone is an ongoing process within the European Union (EU). All member states of the European Union, except Denmark which negotiated an opt-out from the provisions, are obliged to adopt the euro as their sole currency once they meet the criteria, which include: complying with the debt and deficit criteria outlined by the Stability and Growth Pact, keeping inflation and long-term governmental interest rates below certain reference values, stabilising their currency's exchange rate versus the euro by participating in the European Exchange Rate Mechanism, and ensuring that their national laws comply with the ECB statute, ESCB statute and articles 130+131 of the Treaty on the Functioning of the European Union. The obligation for EU member states to adopt the euro was first outlined by article 109.1j of the Maastricht Treaty of 1992, which became binding on all new member states by the terms of their treaties of accession.
↑ "Country & Product Complexity Rankings". atlas.cid.harvard.edu. The Atlas of Economic Complexity. → "Romania". Growth Lab - Center for International Development at Harvard University. Retrieved 27 December 2022. Romania ranks as the 19th most complex country in the Economic Complexity Index (ECI) ranking. Compared to a decade prior, Romania's economy has become more complex, improving 9 positions in the ECI ranking. [...] Romania is more complex than expected for its income level.
↑ Romania Overview: Development news, research, data (11 April 2023). "The World Bank in Romania". worldbank.org. Retrieved 29 September 2023. Romania has made impressive strides in raising its economic performance and prosperity over the past two decades. However, the COVID-19 pandemic and Russia's invasion of Ukraine have tested the resilience of the Romanian economy and exacerbated its structural vulnerabilities, // the World Bank supports Romania's efforts to accelerate structural reforms and convergence with the EU through robust, sustainable, and equitable growth and enhanced competitiveness. // Romania's economy performed better than expected in 2022, expanding by 4.8 percent. Growth was driven by strong private consumption (up 5.5 percent year-over-year) benefiting from the phasing-out of pandemic restrictions, higher wages, and muted unemployment.{{cite web}}: CS1 maint: multiple names: authors list (link)
↑ "Bloomberg: Romania supplies the EU with labor but covers own shortages with Asian workers". Romania-Insider.com. 23 November 2022. Retrieved 27 December 2022. Romania, the second poorest of the 27 EU states at the time of its accession 15 years ago, has seen spectacular economic growth. The country recently surpassed Latvia, Slovakia, and Greece in GDP per capita relative to purchasing power, reaching 73% of the EU average. The average net salary quadrupled in this period, reaching EUR 900 per month.
↑ Data refer to the year 2008. PPP GDP 2008 & Population 2008, World Development Indicators database, World Bank, 15 September 2009. Note: Per capita values were obtained by dividing the PPP GDP data by the Population data.
↑ Romania could cash in four billion dollars from the Constanta-Trieste pipeline. Pumping oil could pay off in Romania as benefits from the Constanta-Trieste pipeline could amount to more than four billion dollars. The benefits could range from 2.27 to 4.39 billion dollars over 20 years, depending on the capacity of the new oleo duct, according to Hill International's feasibility study.
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19,064,409 (2024) [4] 
31.0 medium (2023) [10] 
46 out of 100 points (2023, 63rd)
€137.2 / $143.8 billion (30 June 2022) [30] 
![Eurozone participation
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European Union member states
(special territories not shown)
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20 in the eurozone
1 in ERM II, without an opt-out (Bulgaria)
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4 using the euro with a monetary agreement (Andorra, Monaco, San Marino, and Vatican City)
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