Capital City: Bucharest
	It is %T:%M %A in Bucharest

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Economic trends

Romania, after having joined European Union in January 2007, is expected to start a new phase of economic growth with substantial foreign investments. The GDP growth rate was 8.4% in 2004 and slackened substantially to 4.1% in 2005 due to floods and rise in imports. A revival to 7,7% has been emerging in 2006 and should stay over 6% in 2007 and 2008 according to the IMF forcecast. There has been continuous decline in inflation for last 10 years; from 154.8% in 1997 to an estimated figure of 4.3% in 2007. The National Bank of Romania (the central bank) has tightened monetary policy. The unemployment rate touches nearly 7.5% of the active population. Romania remains one of the poorest European countries, but has considerable potential for development because of its rich agricultural lands, educated & skilled work force, and tourism.

Main branches of industry

Agriculture is an important sector in Romania. It employs nearly 25% the active population and contributes nearly 10% to the GDP. The main crops are cereals, sugar beets and potatoes; though the yield remains very low. About 25% of the country is forested (especially around Transylvania) and wood industry is developing very fast. Romania has an inadequate supply of mineral resources and thus needs to import raw material and fuels, although historically it has been an important oil-producing centre. The manufacturing sector is largely based on heavy industry (still Soviet-styled) and contributes nearly one-third to the GDP. Major manufactured products include steel products, machinery, transport vehicles, and chemicals. Technological modernization of the industry is very much needed. Government has initiated privatization programme to attract investors. Tourism is a growing industry; with Bucharest being called as the “Paris of the East.”

International trade

The share of foreign trade in Romania’s GDP is nearly 85%, which will now improve further after becoming a EU member. Russia is the main source for energy imports. EU is the largest trade partner contributing nearly one-third to Romania’s total foreign trade. The top three export partners are: Italy, Germany and Turkey. The commodities mainly exported are apparel & clothing, electric machinery, mineral fuels & oils, and iron & steel. Romania’s top three import partners are: Italy, Germany and Russia. The country mainly imports mineral fuels & oils, machinery, electric & electronic equipment, vehicles, and plastics.