Economy of Romania Crash Course

Economy of Romania Crash Course


Romania is a very fast developing
mixed economy with high income. This is one of the leading nations
in central and Eastern Europe. Romania’s economy is based on
both, agriculture and industries. However, for centuries, it was only
agriculture that contributed to the economy of Romania and after 1950’s they started
developing heavy industries as well. This nation is ranked as the 10th largest
in the European Union by the total nominal GDP and it is ranked as the 8th largest
depending on its purchasing power parity. As of now, Romania is
the 41st economy in the world with $435.454
million annual output. The economy of this nation is
developing constantly and it is highly expected to reach $1
trillion by the year of 2035. Romania’s economical transition In 1930, the economy of
Romania was mainly agriculture. In 1950, they started
developing heavy industries with the selection of
a new communist leader. In 1970, there was a heavy swift
towards the industries and finally, Romania’s free-market transition
started in 1991 with a new constitution. They selected their first
female prime minister in 2018 to bring further
changes in the economy. Viorica Dancila, the new prime minister
from the central left social democratic party, was selected in January 2018 and
she aimed to eliminate all the corruption. This nation is situated in a
strategic position in the Black Sea. So, this is a big economical advantage. Apart from that, they also have extensive
natural resources and some of their leading economic sectors are petroleum fining, mining,
auto assembly, footwear, textile, etc. However, stuff like political
instability and labor shortage may pose some risk to their
economical growth in the future. The imports of goods and
services have increased by 9.3% while the exports of goods
increased by 7.6% in 2016. They are rich in natural gas, oil,
salt, iron ore, nickel, copper, etc. Some of the top exports of Romania are
machinery equipment, vehicles, food products, plastic, transport equipment,
pharmaceuticals, rubber, etc. As per the reports, they have the
highest growth rates in the EU in 2017 and this is expected to
grow by the coming years as well. Rule of law The Romanian constitution
offers the right to ownership a private
organization and property. Registration of private
property is made too easy by the government by digitizing the
ownership and land records. However, the political influences are
witnessed everywhere including in the court and this is the only stuff which can
hamper the growth of the Romania economy. Open markets The exports and imports are
really high in the Romanian nation and the combined value of both
is almost 85.0% of the GDP. The average tariff rate
in this nation is 2.0%. However, Romanians apply a number of
nontariff trade barriers which includes subsidies, quotas, and some regulation
of the product and technical stuff. Overall, the economy of Romania
is very promising and they tend to attract a large part of
the foreign direct investment.

2 comments

  1. Thanks you, glad to hear Romania is doing well, but the other part of the story is from the people on the ground.

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