Economy - overview Romania, one of the poorer countries in the region, is continuing its difficult transition to a market-based economy. After the collapse of the Soviet Bloc in 1989-91, Romania was left with an obsolete industrial base and a pattern of industrial capacity wholly unsuited to its needs. For the next few years the country lagged behind most of its neighbors in the pace of restructuring. Then in February 1997, Romania embarked on a comprehensive macroeconomic stabilization and structural reform program. The domestic foreign exchange market was freed, and controls on current-account convertibility were removed in October. Restructuring programs include liquidating large energy-intensive industries, and agricultural and financial sector reform. The private sector share of GDP rose to an estimated 58% in 1997, however, this total includes firms with government-held minority stakes. Although progress has been made in privatizing small- and medium-sized firms, delays in structural reforms - including the postponement of sales of large state-owned enterprises - threaten plans to revive GDP growth. In 1998, GDP will likely be unchanged; and inflation is projected to fall to 45% from 151% in 1997.

GDP purchasing power parity - $114.2 billion (1997 est.)

GDP - real growth rate -6.6% (1997 est.)

GDP - per capita purchasing power parity - $5,300 (1997 est.)

GDP - composition by sector
agriculture: 19%
industry: 36%
services: 45% (1996)

Inflation rate - consumer price index 151% (1997 est.)

Labor force
total: 10.1 million (1996 est.)
by occupation: industry 28.6%, agriculture 34.4%, trade 10.4%, construction 5.1%, other 21.5% (1995)

Unemployment rate 8.8% (1997 est.)

Budget
revenues: $10 billion
expenditures: $11.7 billion, including capital expenditures of $1.3 billion (1997 est.)

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

Industrial production growth rate -5.9% (1997 est.)

Electricity - capacity 22.06 million kW (1995)

Electricity - production 55.19 billion kWh (1995)

Electricity - consumption per capita 2,412 kWh (1995)

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

Exports
total value: $8.4 billion (f.o.b., 1997 est.)
commodities: textiles and footwear 27.5%, metals and metal products 16.2%, mineral products 9.0%, chemicals 11.2%, other 36.1% (1996)
partners: Germany 18.1%, Italy 16.7%, France 5.6%, Turkey 5%, Netherlands 4.2%, China 3.0% (1996)

Imports
total value: $10.4 billion (f.o.b., 1997 est.)
commodities: fuels and minerals 24%, machinery and transport equipment 25%, food and agricultural goods 7.6%, chemicals 12.5%, other 30.9% (1996)
partners: Germany 17.1%, Italy 15.6%, Russia 12.6%, France 5.0%, US 3.8%, Egypt 3.8% (1996)

Debt - external $10 billion (1997 est.)

Economic aid
recipient: $NA

Currency 1 leu (L) = 100 bani

Exchange rates lei (L) per US$1 - 8,293.40 (January 1998), 7,167.94 (1997), 3,084.22 (1996), 2,033.28 (1995), 1,655.09 (1994), 760.05 (1993)

Fiscal year calendar year

NOTE: The information regarding Romania on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Romania Economy 1998 information contained here. All suggestions for corrections of any errors about Romania Economy 1998 should be addressed to the CIA.