|Main industries||Automobile industry, petrochemicals, cement and construction, aircraft, textiles, food and beverages, mining, consumer durables, tourism, metallurgical industry, arms industry|
|Industrial growth rate||10.1% (2007)|
|Labor force||15% of total labor force|
|GDP of sector||39.6% of total GDP|
Romania has been successful in developing dynamic telecommunications,aerospace, and weapons sectors. Industry and construction accounted for 32% of gross domestic product (GDP) in 2018, a comparatively large share even without taking into account related services. The sector employed 26.4% of the workforce. With the manufacture of over 600,000 vehicles in 2018, Romania was Europe's sixth largest producer of automobiles. Dacia is producing more than 1,000,000 cars a year (with 1 factory in Morocco).
In 2018 Romania enjoyed one of the largest world market share in machine tools (5.3%). Romanian-based companies such as Automobile Dacia, Ford, Petrom, Rompetrol and Bitdefender are well known throughout Europe. However, small- to medium-sized manufacturing firms still form bulk of the manufacturing sector. These firms employ two-thirds of the Romanian workforce.
Romania's industrial output is expected to advance 7% in 2018, while agriculture output is projected to grow 12%. Final consumption is also expected to increase by 11% overall – individual consumption by 14.4% and collective consumption by 10.4%. Domestic demand is expected to go up 12.7%.
The growth of the industrial sector was the principal stimulus to economic development. In 2018 manufacturing industries accounted for approximately 35 percent of the gross domestic product and 29 percent of the work force. Benefiting from strong domestic encouragement and foreign aid, Bucharest's industrialists introduced modern technologies into outmoded or newly built facilities at a rapid pace, increased the production of commodities—especially those for sale in foreign markets—and plowed the proceeds back into further industrial expansion. As a result, industry is expected to grow by 7.1% in 2018.
Heavy industries generally were located in the south of the country. Factories in Bucharest contributed over 25 percent of all manufacturing value-added in 2018; taken together with factories in surrounding Ilfov, factories in the Bucharest area produced 26 percent of all manufacturing that year. Factories in Bucharest employed 18 percent of the nation's 3.1 million factory workers.
Construction activity (about 10% of GDP) has increased due to recent tax incentives. Romania is becoming an increasingly popular choice for British property investors, according to recent research from Currencies Direct.The latest Global Emerging Markets Index from the foreign exchange company shows that Romania has made the top ten for the first time, reaching number nine. The monthly index is based on the number of foreign exchange transfers undertaken by the firm to emerging market regions for property purchases. According to Currencies Direct, Romania has seen significant increases in house prices in recent years and its interest rate has dropped from a level of 154 per cent in 1997 to 8.9 per cent in 2005.
The construction industry in Romania contributed an estimated 5.95% in 2006 to the country's gross domestic product (GDP). Business Monitor International released Romania Infrastructure Report Q2 2007 in which they forecast an average industry growth rate of 6.84% over the 2007–2011 period.
The construction industry has been receiving funds from foreign institutions including European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB). Furthermore, the Romanian Ministry of Environment and Water Management is making efforts to align the Romanian environment standards with the European standards. One of the ongoing projects in the country is the construction work on the various sections of the Bucharest-Brasov motorway. An increasing number of foreign companies are showing interest in electrical production capacities in the country. Companies include Germany's Siemens, U.S-based AES Corporation and Geneva-based Societe Bancaire Private.
However, the construction industry is subject to a number of risks, which can affect its growth. The rising budgetary deficit, for example, has had an increasingly adverse impact on the availability of funds for the infrastructure sector.
Despite the drawbacks, BMI ranked Romania 12th out of the 13 states included from the Emerging Europe for the infrastructure business environment. The construction industry is forecast to reach a value of RON36.2bn (US$13.41bn) by 2011, from an estimated RON20.88bn (US$7.43bn) in 2006.
The general pattern of development for wealthy nations was a transition from a primary industry-based economy to a manufacturing-based one, and then to a service-based economy. Romania did not follow this pattern, manufacturing has always been secondary, though certainly not unimportant. In part because of this, Romania did not suffer as greatly from the pains of deindustrialization in the 1970s and 1980s. Manufacturers have been attracted to Romania due to the highly educated population with lower labour costs than the EU. Romania's government-run healthcare system is also an important attraction, as it exempts companies from the high health insurance costs they must pay in the EU. Romania is also perceived as a dynamic market for machine tools, especially in the backdrop of growth in the domestic automobile and mechanical engineering sectors. Romanian machine tool exports abroad have been growing at double digit figure since 2002. Moreover, Romanian exports saw an increase of 23 percent in the first half of 2007 compared to the same period last year. The exports comprised mainly machining centres, grinding, honing, lapping machines, gear cutting machines, lathes and milling machines, presses and other metal forming machine tools.
Much of the Romanian manufacturing industry consists of branch plants of EU firms, though there are some important domestic manufacturers, such as Dacia, Roman Braşov, Igero.
Ford bought Daewoo Romania company for €57 million to produce Ford automobiles to a car production estimated to be over 300,000 by 2010.Ford will invest €675 million (US$923 million) in the former Daewoo car factory. Ford also said it would buy supplies from the Romanian market worth €1 billion (US$1.39 billion).
The Dacia Logan was the top-selling new car in Central and Eastern Europe in the first half of 2007 with 52,750 units sold, ahead of Škoda Fabia (41,227 units), Škoda Octavia (33,483 units), Opel Astra (16,442 units) and Ford Focus (14,909 units), shows a market survey of JATO Dynamics, a supplier of automotive market intelligence.
In 2013, the Romanian automotive industry ranks fourth in Central and Eastern Europe, behind that of the Czech Republic, Slovakia, and Poland, with a total car production of 410,997 units.
In Romania are produced a wide range of automobiles, minivans, sport utility vehicles, buses, and trucks. In 2007 Romania exported US$3.7 billion worth of vehicles and components. The vehicle export was 120,000units in 2007. It was expected for 2008 to export about 250,000 units. The vehicle and component export is targeted to reach US$20 billion by 2010. Dacia Logan was the top-selling new car in Central and Eastern Europe in the first half of 2007 with 52,750 units sold, ahead of Škoda Fabia (41,227 units), Škoda Octavia (33,483 units), Opel Astra (16,442 units) and Ford Focus (14,909 units).
Romania planners realized that the country needed to advance quickly in such areas as high technology if the economy were to grow while matching foreign competition. In 1997 the Romania Development Institute issued a report, Romania Year 2000, that profiled Romania economic development in 2000. The Romania Development Institute noted that the industrial structure would be highly developed and would resemble that of advanced countries inasmuch as high value-added industries, high-technology industries, and soft industries grew relatively rapidly. Further, changes in industrial structure were expected rapidly to reduce the demand for unskilled workers while simultaneously increasing the demand for professional and technical manpower, resulting in further change of the employment structure.
The Romania Development Institute also noted that the Ministry of Science and Technology had prepared a long-range plan of science and technology for the twenty-first century that took into account limited available resources. Accordingly, Romania selected its comparative advantage areas, including informatics—particularly information storage and retrieval and electronic data processing, fine chemicals, and precision machinery in the short term; biotechnology and new materials in the mid-term; public benefit areas, such as the environment, health, and welfare, as another group; and oceanography and aeronautics for the medium and long term.
In 2000 Romania announced an ambitious plan to promote science and technology so that high-technology activities would dominate the economy by the year 2007. The Ministry of Science and Technology intended to coordinate technology-related projects between government and industry in a variety of fields including semiconductors, computers, chemistry, and new materials.
Romania is one of the most attractive markets in Europe for technology investment and outsourcing, with a highly skilled and diversified workforce, competitive prices, and a stimulating business environment with a sector worth as 40 billion EUR. Romania's IT sector has seen continuous growth over the past decade, despite political turbulence and the economic crisis, which is a good indicator of its driving force. Known for their broad technical expertise, their flexibility, enthusiasm and excellent language skills, Romania's software service providers are a great choice for long-term collaborations in both nearshoring and offshoring businesses.
Romania is one of the fastest-growing information technology (IT) markets in Central and Eastern Europe. The country has made significant progress in all of the information and communications technology (ICT) subsectors, including basic telephony, mobile telephony, the Internet and IT. The country's telecoms sector has been deregulated, expanded and modernised over the past 15 years.
Romania is the leader in Europe, and sixth in the world, in terms of the number of certified IT specialists, with density rates per 1,000 inhabitants greater than in the US or Russia. There are about 100,000 specialists in the IT sector. Approximately 15,000 of the 40,000 engineers graduating every year in Romania are trained in ICT.Microsoft acquired Romanian Antivirus Technology in 2003. According to Microsoft, Romania has a clear potential in information technology, an area in which Romanian students, researchers and entrepreneurs excel. Its western-oriented culture and the high educational degree of its youth bring Romania forward as a huge potential market (the second largest software producer in Eastern Europe). In terms of IT outsourcing services Romania is ranked in the third place worldwide successfully challenging India.
The IT market is one of the most dynamic sectors of the Romanian economy. Since the year 1994 the IT market has demonstrated growth rates of 40–60 percent a year. The biggest sector in terms of revenue is system and network integration, which accounts for 28,3% of the total market revenues. Meanwhile, the fastest-growing segment of the IT market is offshore programming. The industry of software development outsourcing crossed the mark of $3 billion of total revenues in 2005 and reached $4.8 billion in 2006. Currently, Romania controls 5 percent of the offshore software development market and is the third leading country (after India and China) among software exporters. Such growth of software outsourcing in Romania is caused by a number of factors. One of them is the supporting role of the Romanian Government. The Government has launched a program promoting construction of IT-oriented technology parks – special zones that have an established infrastructure and enjoy a favorable tax and customs regime. Another factor stimulating the IT sector growth in Romania is the presence of global technology corporations such as Intel, Motorola, Oracle, Sun Microsystems, Boeing, Nokia and others, which have intensified their software development activities and opened their R&D centers in Romania.
The ICT industry has broadened its focus beyond manufacturing equipment to maintenance and management services as well as creating audio, video, print and digital content. These developments are anticipated to create a variety of new opportunities in Romania's ICT market. On the occasion of the World Electronics Forum (Paris 2000), the "Worldwide ICT Professionals Market Situation Study" showed that, by 2008, Romania will be the only European country to have excellent IT specialists. As of 2003 [update] . Romania ranked the 6th in the world by number of certified professionals ("2003 Global Skills IQ Report", Brainbench) and has been awarded a bronze certificate in the category of "Most Certified Nation (Overall)" during the first annual Bench Games 2005 ("2005 Bench Games Report", Brainbench). Vice president for EMEA, showed that Oracle was committed to encouraging this country to take advantage of its potential: "Oracle aims to help push Romania into becoming the Silicon Valley of Central and Eastern Europe."Currently, about 25,000 software professionals work in the industry and almost 1/5 of them are involved in software export activities.
The emergence of Romania as a software & IT-exporting country has raised a number of issues for Romanian economic policy. There has been concern that much of Romania's human capital investment has been concentrated in IT-related industries. Critics have pointed out that Romania's economic structure is highly dependent on human resources that do require skilled labor, making economic growth highly vulnerable to fluctuations in the demand and pricing for these IT % software resources. The Government Pension Fund of Romania is part of several efforts to hedge against dependence on IT & software revenue.
In 1938, Romania produced 6.6 million tons of crude oil, 284,000 tons of crude steel, 133,000 tons of pig iron, 510,000 tons of cement and 289,000 tons of rolled steel.
Romania's industry turnover went up by 11.7% in 2017 compared to 2016, as the manufacturing industry increased by 11.5% and the mining industry grew by 20.5%, according to the National Statistics Institute (INS).
By main industrial groups, there were rises as follows: in energy industry (+22.5%), in capital goods industry (+16.2%), in intermediate goods industry (+10.2%), in durable goods industry (+8.2%) and in non-durable goods industry (+5.5%).
The new orders in the manufacturing industry increased by 12.9% last year compared to 2016. The new orders for consumer durables went up by 27.2% and those for intermediate goods increased by 17.3%.
Industry generates about 35% of Romania's gross domestic product (GDP).
Romania is the 11th largest arms supplier in the world. The Romanian arms industry's main customer, for whom they mainly build warships, vehicles, and equipment, is the Romanian Government. Furthermore, record high defense expenditure (currently at 5 billion €), which was considerably increased under the government of Prime Minister Călin Popescu-Tăriceanu, has contributed to the success of the Romanian arms industries. In addition, external demand plays a significant part in the growth of this sector: for example, Romania exports great quantities of weaponry to the Middle East, including Iraq.
In recent years, the Romanian Government has called, unsuccessfully, for the lifting of the EU weapons trade embargo on China.
The economy of Bulgaria functions on the principles of the free market, having a large private sector and a smaller public one. Bulgaria is an industrialised upper-middle-income country according to the World Bank, and is a member of the European Union (EU), World Trade Organization (WTO), Organization for Security and Co-operation in Europe (OSCE) and Organization of the Black Sea Economic Cooperation (BSEC). The Bulgarian economy has experienced significant growth (416%) starting from $13.15 billion and reaching estimated gross domestic product (GDP) of $67.9 billion or $171.185 billion, GDP per capita of $24,595, average gross monthly salary of 1,349 leva, and net average monthly salary of $1,505 (2019). The national currency is the lev, pegged to the euro at a rate of 1.95583 leva for 1 euro. The lev is the strongest and most stable currency in Eastern Europe.
The economy of Jordan is classified as an emerging market economy. Jordan's GDP per capita rose by 351% in the 1970s, declined 30% in the 1980s, and rose 36% in the 1990s. After King Abdullah II's accession to the throne in 1999, liberal economic policies were introduced. Jordan's economy has been growing at an annual rate of 8% between 1999 and 2008. However, growth has slowed to 2% after the Arab Spring in 2011. Substantial increase of the population, coupled with slowed economic growth and rising public debt led to a worsening of poverty and unemployment in the country. As of 2019, Jordan boasts a GDP of US$44.4 billion, ranking it 89th worldwide.
The economy of Pakistan is the 22nd largest in the world in terms of purchasing power parity (PPP), and 45th largest in terms of nominal gross domestic product. Pakistan has a population of over 220 million, giving it a nominal GDP per capita of $1,186 in 2020-21, which ranks 154th in the world and giving it a PPP GDP per capita of $5,839 in 2019, which ranks 132nd in the world for 2019. However, Pakistan's undocumented economy is estimated to be 36% of its overall economy, which is not taken into consideration when calculating per capita income. Pakistan is a developing country. The economy is semi-industrialized, with centres of growth along the Indus River. Primary export commodities include textiles, leather goods, sports goods, chemicals and carpets/rugs.
The economy of Paraguay is a market economy that is highly dependent on agriculture products. In recent years, Paraguay's economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power but has few mineral resources, and political instability has undercut some of the economic advantages present. The government welcomes foreign investment.
The economy of Romania is a fast developing, high-income mixed economy with a very high Human Development Index and a skilled labour force, ranked 12th in the European Union by total nominal GDP and 7th largest when adjusted by purchasing power parity.
The economy of South Korea is a highly developed mixed economy dominated by family-owned conglomerates called chaebols. It is the 4th largest GDP in Asia and the 10th largest in the world. It is a member of the OECD and the G-20. It is included in the group of Next Eleven countries as having the potential to play a dominant role in the global economy by the middle of the 21st century.
Iran's telecommunications industry is almost entirely state-owned, dominated by the Telecommunication Company of Iran (TCI). Fixed-line penetration in 2004 was relatively well-developed by regional standards, standing at 22 lines per 100 people, higher than Egypt with 14 and Saudi Arabia with 15, although behind the UAE with 27. Iran had more than 1 mobile phone per inhabitant by 2012.
The economy of Bangladesh is a developing market economy. It's the 35th largest in the world in nominal terms, and 30th largest by purchasing power parity; it is classified among the Next Eleven emerging market middle income economies and a frontier market. In the first quarter of 2019, Bangladesh's was the world's seventh fastest growing economy with a rate of 8.3% real GDP annual growth. Dhaka and Chittagong are the principal financial centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange. The financial sector of Bangladesh is the third largest in the Indian subcontinent. Bangladesh is one of the world's fastest growing economies.
Iran’s automotive industry is the third most active industry of the country, after its oil and gas industry, accounting for 10% of Iran's GDP and 4% of the workforce.
Japan's major export industries include automobiles, consumer electronics, computers, semiconductors, copper, iron and steel.
Much of the Romanian manufacturing industry consists of branch plants of foreign firms, though there are some important domestic manufacturers, such as Automobile Dacia, Ford Romania, Roman Braşov and Igero. In 2018, est. 500,000 automobiles were produced in Romania.
Industry was 39.9% of China's gross domestic product (GDP) in 2017. In 2007, industry contributed 46.7 percent of GDP in 2010 and occupied 27 percent of the workforce. In 2015, the manufacturing industrial sectors contributed to 40% of China's GDP. The manufacturing sector produced 44.1 percent of GDP in 2004 and accounted for 11.3 percent of total employment in 2006.
Pakistan Software Export Board (PSEB) is an apex Government body mandated to promote Pakistan's IT Industry in local and international markets. PSEB facilitates the IT industry through a series of projects and programs.
Pakistan's industrial sector accounts for about 64% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 65% of the merchandise exports and almost 40% of the employed labour force. Cotton and cotton-based products account for 61% of export earnings of Pakistan. The consumption of cotton increased by 5.7% over the past five years while the economic growth rate was 7%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion. Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.
This article provides an overview of the automotive industry in countries around the world.
The textile industry is the largest manufacturing industry in Pakistan. Pakistan is the 8th largest exporter of textile commodities in Asia. Textile sector contributes 8.5% to the GDP of Pakistan. In addition, the sector employs about 45% of the total labor force in the country. Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India and contributes 5% to the global spinning capacity. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile.
The information technology sector in Bangladesh had its beginnings in nuclear research during the 1960s. Over the next few decades, computer use increased at large Bangladeshi organizations, mostly with IBM mainframe computers. However, the sector only started to get substantial attention during the 1990s. Today the sector is still in a nascent stage, though it is showing potential for advancement.
South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million automobiles annually of all types. While domestic development of trucks and military vehicles exists, cars built under license of foreign brands are the mainstay.
As of 2017, the automotive industry in Thailand was the largest in Southeast Asia and the 12th largest in the world. The Thai industry has an annual output of near two million vehicles, more than countries such as Belgium, the United Kingdom, Italy, Czech Republic and Turkey.
The Moroccan automotive industry is led by investment by French Renault-Nissan Alliance and PSA Group car companies. BYD leads the Chinese investment in Morocco. Investment is encouraged by the Moroccan government by removing certain taxes in the first five years in order to encourage the companies to come. Fiat ended its production role in Morocco in 2003 by selling its stake in Somaca to Renault. There is a small local manufacturing industry including Laraki.