World Grain - January 2019 - 20

COUNTRY FOCUS
KEY FACTS

FOCUS ON

ROMANIA
Country is becoming an increasingly
important grain producer and exporter
by Chris Lyddon

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Capital: Bucharest
Population: 21,457,116 (July 2018 est.)
Religions: Eastern Orthodox (including all sub-denominations) 81.9%, Protestant (various denominations, including Reformed and Pentecostal) 6.4%, Roman Catholic 4.3%, other (includes Muslim) 0.9%, none or atheist
0.2%, unspecified 6.3% (2011 est.).
Location: Southeastern Europe, bordering the Black
Sea, between Bulgaria and Ukraine.
Government: Semi-presidential republic. Chief of state:
President Klaus Iohannis (since Dec. 21, 2014); head of
government: Prime Minister Viorica Dancila (since Jan.
29, 2018).
Economy: Romania, which joined the E.U. on Jan. 1,
2007, began the transition from communism in 1989
with a largely obsolete industrial base and a pattern
of output unsuited to the country's needs. Romania's
macroeconomic gains have only recently started to spur
creation of a middle class and to address Romania's
widespread poverty. Corruption and red tape continue to
permeate the business environment. In the aftermath of
the global financial crisis, Romania signed a $26 billion
emergency assistance package from the IMF, the E.U.,
and other international lenders, but GDP contracted until
2011. In March 2011, Romania and the IMF/E.U./World
Bank signed a 24-month precautionary standby agreement, worth $6.6 billion, to promote fiscal discipline, encourage progress on structural reforms, and strengthen
financial sector stability; no funds were drawn. In September 2013, Romanian authorities and the IMF/E.U.
agreed to a follow-on standby agreement, worth $5.4
billion, to continue with reforms. This agreement expired
in September 2015, and no funds were drawn. Progress
on structural reforms has been uneven, and the economy
still is vulnerable to external shocks. Economic growth rebounded in the 2013-17 period, driven by strong industrial exports, excellent agricultural harvests, and, more recently, expansionary fiscal policies in 2016-17 that nearly
quadrupled. Industry outperformed other sectors of the
economy in 2017. Exports remained an engine of economic growth, led by trade with the E.U., which accounts
for roughly 70% of Romania trade. Domestic demand
was the major driver, due to tax cuts and large wage increases that began last year and were set to continue in
2018. An aging population, emigration of skilled labor,
significant tax evasion, insufficient health care, and an
aggressive loosening of the fiscal package compromise
Romania's long-term growth and economic stability and
are the economy's top vulnerabilities.
GDP per capita: $24,600 (2017 est.) ; inflation: 1.3%
(2017 est.) ; unemployment: 4.9% (2017 est.).
Currency: lei (RON): 4.06 lei equal 1 U.S. dollar (Dec.
20, 2018).
Exports: $64.58 billion (2017 est.): machinery and
equipment, other manufactured goods, agricultural products and foodstuffs, metals and metal products, chemicals, minerals and fuels, raw materials.
Imports: $78.12 billion (2017 est.): machinery and
equipment, other manufactured goods, chemicals, agricultural products and foodstuffs, fuels and minerals, metals and metal products, raw materials.
Agriculture: 4.2% (2017 est.) of GDP and 28.3% of
the labor force.
Internet: Code: .ro; 12,852,696 (July 2016 est.) users.
Source : CIA World Factbook

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