The end of the communist period marked the beginning of a sharp economic downturn. For this reason Romania must fulfil the five Maastricht criteria, of which it met none as of June 2020. Congress approved restoration of the MFN status effective 8 November 1993, as part of a new bilateral trade agreement. In Romania, a job diminishes much less the risk of poverty: only by one third to 23.9%. According to Bloomberg, the country's economic growth advanced at the fastest pace since 2008.

Please help update this article to reflect recent events or newly available information. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds is expected to accelerate economic growth. 1 RON is equal to 10,000 ROL. The minimal working wage per hour in 13.58 lei, the raw and approximated equivalent of 2.76 euros. Since 2018 the flat rate was lowered to 10%. "Romania contruieste a doua centrala nucleara", "Avalansa portugheza: Martifer pregateste o achizitie de 7 mil. 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.

[103], Households with access to fixed and mobile telephone access[104], Individuals using computer and internet[104], The rate of increase of the 12-month average. The country is a regional leader in fields such as IT and motor vehicle production.

[32] Romania is the largest electronics producer in Central and Eastern Europe. The 2020 Country Report tailored to the pressing needs of Romania, assessing the progress on structural reforms, prevention and correction of macroeconomic imbalances, measured that in 2018, the in-work poverty rate was 15.3%. In March 2017, the gross average monthly wage was RON 3,256 (716), and the net average monthly wage was RON 2,342 (515). [41], Romania's debt was completely paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. 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. Fishing is an economic mainstay in parts of eastern Romania and along the Black Sea coast, with important fish markets in places such as Constanta, Galai and Tulcea. Romania joined the European Union on 1 January 2007 and initially hoped to adopt the euro in 2014,[63] but with the deepening of the Euro crisis and with its own problems, such as a low workforce productivity, postponed its adoption plans indefinitely. Although the term of poverty does describe with doubtless exactitude the grim and deficient economic situation in Romania, it is of utmost importance to note that the present circumstances are actually an improvement compared to the shabby economy of the last decade. 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 latest known statistics embolden this binary consideration whilst the lineage of in-work poverty in Romania remains constant. In the past few decades, much of the freight traffic shifted from rail to road. Accession to the EU gives further impetus and direction to structural reform. Below is a table of Romania's neighbouring countries, their GDP per capita, and trade values between the pairs. The service sector in Romania has expanded in recent years, employing some 47% of Romanians and accounting for slightly more than half of GDP.

This led to some immediate international trade liberalisation. 2022 City Compass Media and/or its affiliated companies. Romania had an in-work poverty rate of 17%, duplicating the rate possessed by the European Union, in integrum, of 9.6%. [64], As of February 2021, 1 RON is worth about 0.2045 EUR and US$0.2483. The leu (pronounced [lew]), plural: lei ([lej]); (ISO 4217 code RON; numeric code 946), "leo" (lion) in English is the currency of Romania. This rate supposedly affected mostly vulnerable groups and alienated the economic status of the rural areas. [81], 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. [98], Romania has the third-highest percentage of women working in information and communications technologies (ICT) in Europe.

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%. The economy of Romania entered modernity with the Treaty of Adrianople in 1829, ending centuries of Turkish control. Romania was the largest U.S. trading partner in Central-Eastern Europe until Nicolae Ceauescu's 1988 renunciation of Most Favored Nation (non-discriminatory) trading status, which resulted in higher U.S. tariffs on Romanian products. EU members are represented by a single official at the World Trade Organization.

(P) Mintia Thermal Power Plant, a national asset with a history of over 50 years, to be sold at public auction, Romanias Timisoara gets access to European waterways through renewed Bega canal, Scandal emerges as Romania is stuck with some 40 mln Covid-19 vaccine doses it has to buy, Solidarity with Ukraine: How you can help refugees coming to Romania & where to donate. The change in the annual average exchange rate against the euro. One of her latest endeavours in the economic sector comes from the 29th of March 2021, when she pleaded her ministers 5 potential variants in order to reconfigure the special pension system from Romania. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation. Imports of goods and services increased 9.3%, while exports grew 7.6% in 2016, as compared to 2015. 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. The railway network, which was significantly expanded during the Communist years, is the fourth largest in Europe. In 2017, the report entitled ESPN Thematic Report on In-work poverty conceived by Luana Pop for the European Commission, depicted an identical, double-oriented ratio exhibited by Romania and the European Union. 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. Until World War II, Romania was Europe's second-largest oil and food producer. We have a plan for your needs. 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%). Persons are considered to be at risk of poverty after social transfers if they have an equivalised disposable income below the risk-of-poverty threshold, set at 60% of the national median equivalised disposable income. If you use our chart images on your site or blog, we ask that you provide attribution via a link back to this page. Mostly true: Poverty remains a major problem in Romania and the value of work in Romania is more than 3 times lower than the EU average. This percentage is solidly sustained by the same unfaltering consistency, with the rate never going below 9% ever since 2013. Ad hoc public wage hikes and consecutive increases of the minimum wage, which rose by almost 40% in real terms between end-2015 and end-2017, have been among the drivers of these developments, pointedly elucidates the study. Historically, Romania - At-risk-of-poverty rate reached a record high of 25.40% in December of 2015 and a record low of 21.60% in December of 2010. Romania's weight in the global economy dropped to 0,3% in 1993 down from 0,8% in 1983. In 2003 the service sector constituted 55% of gross domestic product (GDP), and employed 51.3% of the workforce. Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. [50] It is now considered the next tech-startup hub country in EU. [citation needed] Energy needs are also met by importing bituminous and anthracite coal and crude petroleum. Romania is a leading destination in Central and Eastern Europe for foreign direct investment: the cumulative inward FDI in the country since 1989 totals more than $170 billion. The maximum allowed change in rate is 2.25% for Denmark. As a defining terminology, in the vision of Rod Hick and Alba Lanau from Cardiff University, in-work poverty occurs when a working households total net income is insufficient to meet their needs. In recent years, Romania enjoyed some of the highest growth rates in the EU: 4.8% in 2016, 7.1% in 2017, 4.4% in 2018, and 4.1% in 2019. 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. Average wealth per adult was US$20,321. As a further ado, the dismissive factors determining Romanias economic panorama are multiple and they all conglomerate to create these fuzzy and dense problems. White label accounts can distribute our data. 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 be included in the calculation of the reference value. But thankfully it's beginning to recover in 2022.[62]. Low interest rates guarantee availability of funds for investment and consumption. The Trading Economics Application Programming Interface (API) provides direct access to our data. Major Romanian exports to the U.S. include shoes and clothing, steel, and chemicals. 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%). Paul Bray reports", Dup douzeci de ani. [38], The industry in Romania generated 33.6% of the local gross domestic product (GDP) in the first half of 2018.[39].

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 is part of the European single market which represents more than 447 million consumers. 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. However, small- to medium-sized manufacturing firms form the bulk of Romania's industrial sector. On the 1st of May 2021, which is symbolically deemed Labour Day, Raluca Turcan, the Romanian Minister of Work and Social Protection, took to Facebook in order to convey a clear radiography about the economic reality of the country. [80], Romania has considerable[vague] natural resources for a country of its size, including coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land and hydropower.

According to the Eurostat Data Browser, 2019 witnessed an in-work poverty rate of 15.7% whereas 2020 beheld a rate of 14.9%. Both these trajectories are worthy of a closer investigation in terms of accuracy. Inflation under 2% is in green.[55]. [citation needed] Romanian-based companies such as Dacia, Petrom, Rompetrol, Bitdefender, Romstal and Mobexpert have expanded operations throughout the region. For comparison, Germany alone accounted for 23% of Romania's exports and 20.1% of its imports. 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. The trade deficit stood at roughly 2 billion EUR, the eighth largest in the EU. Dairy products, pork, poultry, and apple production are concentrated in the western region. In 2013, some 410,997 automobiles were produced in Romania, up from 78,165 in 2000. [102] The annual trade deficit has widened every year since 2014, standing at about EUR 18.77B in 2020. [92], Romania has become a natural gas exporter. The statement extracted from her Facebook post is also infused with the troublesome status quo of the economic sector in Romania. All rights reserved. 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. Agriculture employs about 26% of the population (one of the highest rates in Europe) and contributes about 4.3% of GDP. 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. Dispare cel pentru studii superioare - Finante - Banci - HotNews.ro", "Cum a afectat pandemia turismul romnesc: Sosirile vizitatorilor strini au sczut n iunie cu 68,7% fa de iunie 2019", "Romania hopes to introduce euro in 2014", "Croitoru (BNR): Adoptarea monedei euro, un orizont indepartat", "RON/USD (RONUSD=X) Live Rate, Chart & News - Yahoo Finance", "RON/EUR (RONEUR=X) Live Rate, Chart & News - Yahoo Finance", "HICP (2005=100): Monthly data (12-month average rate of annual change)", "The corrective arm/ Excessive Deficit Procedure", "Long-term interest rate statistics for EU Member States (monthly data for the average of the past year)", "General government gross debt (EDP concept), consolidated - annual data", "ERM II the EU's Exchange Rate Mechanism", "Euro/ECU exchange rates - annual data (average)", "Former euro area national currencies vs. euro/ECU - annual data (average)", "Luxembourg Report prepared in accordance with Article 126(3) of the Treaty", "Progress towards convergence - November 1995 (report prepared in accordance with article 7 of the EMI statute)".

(Photo source:Stanislau V/Dreamstime.com). Romania's tourism took a great hit during the 2020 COVID-19 pandemic, with a drop of as much as 68% of foreign visitors in 2020. The following table shows the highest GDP per capita of the other 4 counties, with data supplied by CNP.

Romania excels in the production of automobiles, machine tools, and chemicals. ROMANIA An Illustrated History. [37] Mostly true: Russia abandons International Space Station: It could fall on Europe. Growth in 200007 was supported by exports to the EU, primarily to Italy and Germany, and a strong recovery of foreign and domestic investment. [28], Romania's economy ranks 37th in the world, with a $707 billion annual output (PPP). [33] In the past 20 years Romania has also grown into a major center for mobile technology, information security, and related hardware research. 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. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion. The EU is Romania's main partner in the trade with agri-food products. [48], The level of investment remains above EU average. These results, at their finest, are already a sombre provision of the detrimental place the value of work in Romania occupies. Direct access to our data from your apps using any programing language. Raluca Turcan has been a durable presence in the National Liberal Party and has tackled similar, economic-oriented issues, proposing throughout time several alternatives for the revival and reconstruction of the Romanian economic sector: prolonging the duration of the professional life until 70 years old or the attempt of reducing the incessant bureaucratization, in regards to the unessential documents, in the small companies via the introduction of the electronic signature. Poverty headcount ratio at $5.50 a day is the percentage of the population living on less than $5.50 a day at 2011 international prices. [93] 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.[94]. [32], Romania's mineral production is adequate to supply its manufacturing output. 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. Please check your download folder. Advanced users can use our Python/R/Matlab packages. In the Romanian press the economy has been referred to as the "Tiger of the East" during the 2000s. (P) Hidden real estate gem in Snagov for sale. The rise was more than necessary as at the beginning of 2015, since a staggering 40% of the population was earning the minimum wage and 6.8% were totally unemployed, as unearthed by the National Statistics Institute. On 1 January 2007 Romania and Bulgaria entered the EU, giving the Union access to the Black Sea. 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. 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. However, the Romanian economy was affected by the financial crisis of 200708 and contracted in 2009. On 1 July 2005, Romania underwent a currency reform, switching from the previous leu (ROL) to a new leu (RON). Values well below the national average are found in: Vaslui, Botoani, Clrai, Neam, Vrancea, Suceava, Giurgiu, Mehedini, Olt and Teleorman. Over one in three Romanians are thus at risk of poverty.

PPP, and GDP per capita is the highest in Bucharest. World Bank estimated that in 2002 99% of the urban and 94% of the rural population had access to electricity. A further strong increase of traffic is expected in the future. Indeed, according to a scientific survey realized by Eurostat in 2020, the average hourly cost of labour was 28.5 euros across the European Union, with a severe pendulation between Bulgaria, with a low rate of 6.5 euros and Denmark, with the apogee of 45.8 euros as average. Romania is a popular tourist destination, with more than 15.7million domestic and foreign tourists in 2018. [citation needed], The strength of the Romanian economy varies from region to region. The same minimum wage applies to employees with a seniority of over 15 years. Lesser amounts of copper, lead, molybdenum, gold, silver, kaolin, and fluorite also were mined. On the 11th of April 2018, Angela Cristea, head of the European Commission office in Romania declared that Romania still displays a paradox of social inequality and poverty, while the countrys economic growth stays above the European Union average, as mentioned by a telling report of World Vision Romania tackling the same problematic labyrinth. In short, the claim distributed via social media channels by Raluca Turcan is preponderantly true as the numbers mostly match. Romania has growing middle and upper classes with relatively high per-capita income. [61], 40% of the 15.6 million Romanian adults had a wealth of less than US$10,000.[61]. [40], After 1945, Soviet-occupied Romania became a member of the Eastern Bloc and switched to a Soviet-style command economy. Romania posted 6% economic growth in 2016, the highest among European Union member states. Other important partners are the CEFTA countries, Turkey, Republic of Moldova and the USA. As of December 2020, 914km[89] of motorways are in use with a small portion of Lugoj-Deva (between Margina and Holdea)to be finished while Sibiu-Pitesti is still tendering. 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). The pipeline network in Romania included 2,427km for crude oil, 3,850km for petroleum products, and 3,508km for natural gas in 2006. Therefore, the PPP per capita GDP of Romania in 2008 was estimated to be between $12,200[43] and $14,064.[44]. Last update: 'Summer 2022 Economic Forecast (14/07/2022)', "Romania: Share of economic sectors in the gross domestic product (GDP) from 2010 to 2020", "Europe and Central Asia Economic Update, Spring 2020: Fighting COVID-19 / PDF report, World Bank Group, p. 81-82", "One in five people in the EU at risk of poverty or social exclusion", "Gini coefficient of equivalised disposable income - EU-SILC survey", "Human Development Reports: Romania. [47] As of 2018, total FDI in Romania was 81 billion EUR, 63% of total (51 billion) are greenfield investments.

Economia Romniei n 1989, "Romania isi va recupera datoriile din Irak BloomBiz.ro Your Business Community", "A Better Red: The Transition from Communism to Coca-Cola in Romania", "Eurostat: Romania posts biggest economic growth in EU in 2016 Q2", "One of the poorest countries in the EU could be its next tech-startup hub", "Report for Selected Countries and Subjects", "Investments in Romanian economy, up 5.8% in the first half of this year", "Earnings since 1991, the monthly series", "GDP per capita (current US$) Romania, Moldova, Hungary, Serbia, Bulgaria, Ukraine", "OFICIAL Salariul minim n 2022 este de 2550 lei brut. Investment accounts for almost 25% of GDP in Romania as opposed to 19% of GDP in the EU, in 2016.[49]. API users can feed a custom application. [34][35][36] Bucharest, the capital city, is one of the leading financial and industrial centres in Eastern Europe. Due to some inexact numbers infused in this post, this claim turned out to be only mostly true, with minor errors infiltrating themselves. During the first trimester of 2010, Romanian exports increased by 21%, one of the largest rates in the European Union. Romania has been successful in developing its industrial sector in recent years. [60], In 2018, the median wealth per adult in Romania was estimated by Credit Suisse at USD 17,658. Download historical data for 20 million indicators using your browser. 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.